THEMATIC REVIEW OF THE TRANSITION

FROM INITIAL EDUCATION TO WORKING LIFE

CZECH REPUBLIC

BACKGROUND REPORT

APRIL 1997

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TABLE OF CONTENTS

CHAPTER I: CONTEXTUAL AND INSTITUTIONAL FACTORS...........................................................3

1. The economic, social and political transformation..................................................................................32. Basic socio-demographic trends..............................................................................................................53. Economic activity rate of population, economic structure and the labour market..................................54. Institutional System of the Labour Market and the System of Education...............................................6

CHAPTER II: CLARIFICATION OF PERCEPTIONS ................................................................................8

CHAPTER III: CONCERNS ABOUT TRANSITION PROCESSES AND OUTCOMES ........................11

1. Characteristics of study and employment participation of young people .............................................112. The impact of economic transformation and social changes on transition models...............................123. The impact of the education system on the employment of young people ...........................................164. Conditions on the Labour Market for Employing School Graduates....................................................23

CHAPTER V: CHANGES OF EXPECTATIONS AND OBJECTIVES ....................................................28

CHAPTER VI: POLICY FOR THE TRANSITION PROCESS..................................................................31

1. Education Policy....................................................................................................................................312. The Policy of the Sector of Labour........................................................................................................333. Relations Between Sectors of Relevant Ministries ..............................................................................344. The Impact of Agents at the Territorial Level.......................................................................................355. Policy in the Sphere of the Mobility of Students across the Education system and Certification policy ..... 386. The Impact of Supranational Programmes and Organisations ..............................................................397. Monitoring and Research.......................................................................................................................41

SUMMARY ..................................................................................................................................................45

NOTES TO THE TEXT................................................................................................................................47

REFERENCES ..............................................................................................................................................49

ANNEX 1: Structure and functions of the institutional system of labour market ........................................51

ANNEX 2: Description of the School System ..............................................................................................55

ANNEX 3: Survey of Certification in the Czech Education System............................................................57

ANNEX 4: Fundamental Political and Legal Documents ............................................................................58

ANNEX 5: Territorial Structure of Unemployment of Graduates................................................................61

ANNEX 6: Tables 1 - 28...............................................................................................................................62

ANNEX 7: Graphs 1 - 4 ................................................................................................................................95

ANNEX 8: Scheme of the education system in the CR -- 1990, 1996..........................................................102

APPENDIX .................................................................................................................................................105

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CHAPTER I: CONTEXTUAL AND INSTITUTIONAL FACTORS

1. The economic, social and political transformation

The fundamental steps in the transformation of Czech economy, including the necessary institutionalchanges, have been realised in recent years and currently these measures are being enhanced. The initialstage of transformation included almost full liberalisation of prices (certain price regulation still appliesfor housing, electricity, gas and water supply to households, passenger transport and the health sector) andsubsequent deregulation measures are implemented annually (thus far the decision makers somewhatdisagree on the rate of progress of deregulation). This was accompanied by the liberalisation of foreigntrade (which used to be the monopoly of the state) and later on wages were liberalised and the currencywas made convertible (except for parts of the capital account). The tax system was restructured and madecompatible with that in Western Europe and the social security system was reformed (see below). Variousforms of privatisation, including the specific voucher privatisation method and direct sales of enterprisesor parts thereof to domestic or foreign businesses, made a quick progress. At present the private sectoraccounts for some three fourths of GDP. The Czech Republic, along with Hungary and Poland, becameone of the major target countries for foreign investments to economies in transformation in Central andEastern Europe (direct foreign investment exceeded 7 billion USD since the beginning of transformation).

The major asset of the past period needs to be seen in the recovery of output growth, following itsdramatic dip during the first years of transformation. Notwithstanding some persistent or newly emergingproblems, the rate of growth of the gross domestic product (GDP) was, during the recent two years, almosttwice as high as the average for OECD countries. Nevertheless, the output is still by about one tenth belowits pre-transition level. The economic boom caused an increase in employment (after its downward trendin 1990-1993) and an increase in real incomes of the population. Unemployment is still very low.Registered unemployment during the recent four years hovered around 3 percent (the sample surveyscarried out pursuant to the ILO methodology yield a figure by about 0.5 percentage points higher), butdisplayed a clear modest upward trend for the next years, related to the anticipated restructuring inprivatised enterprises. The state budget has been in the long run balanced (though with certain exceptionsin 1996) and the public debt is also very low (below one third of the EU Maastricht criteria).

Relatively high inflation, which during the recent three years amounted to some 9-10%, is one of themajor current economic problems. More recently, this has been accompanied by a growing foreign tradedeficit and the related overall deficit of the balance of payments current account. 1996 was the first year inwhich this deficit was not compensated even by a surplus on the capital account (the central bank foreignexchange reserves, amounting to some five months' imports, suffice to cover the deficit). One of thefactors behind these difficulties may be the relatively rapid growth of real wages - in recent years 8-9percent annually, exceeding markedly labour productivity growth, which during this period amounted toonly 2-3 percent. (For more details see Table 1 in the Annex). Some above mentioned negative tendencies- especially deficit of the state budget and deficit of the trade balance and balance of payment - are gettingdeeper at the beginning of 1997.

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The protracted restructuring of industry and businesses in general and the consequent low efficiency in theeconomy seem to be - in spite of the really large extent of privatisation - the most serious problems oftransition. Though Slovenia has from among the countries in transition, the highest GDP per capita (inpurchasing power parity terms) it still amounts to only one half of the OECD average. For the CzechRepublic, in spite of its higher rates of GDP growth, it will probably still take same time to approach theOECD levels.

The adjustment of social structure to market economy may, in general, amount to a long term process.Some new phenomena did however already emerge in the wake of renewal of private ownership andliberalisation in the labour market. In contrast to the almost unique position enjoyed by economicallyactive persons - the employees - in the past, there now emerged new groups of self-employed: primarilyprivate entrepreneurs, owners and co-owners, lead managers of businesses (these persons account,according to the statistical register, for almost 20 percent of all employed persons). The majority ofemployees work already in the non-governmental, usually private, sector. Household incomes thus begin,after decades of stagnation, to differentiate: whereas the share of total incomes of households in the lowand middle income group in the incomes of all households was during the recent years falling, the share ofthe one fifth of households with top incomes increased from less than 35 percent in 1988 to the estimated40-45 percent at present. In the past, the lowest income households were typically those of pensioners, butnow they include primarily low income economically active households with children. Households withthe highest income include primarily those of new entrepreneurs and top managers, especially in thefinancial sector, state administration and foreign companies in general (leaving aside the grey or illegaleconomy, which is not covered by any impartial monitoring). In general, the incidence of householdpoverty in the Czech Republic, in terms of the share of households below subsistence minimum level, isrelatively low (estimated at some 3-5 percent of all households). For more details on income and propertydifferentiation please refer to /1/.

A social safety net has been established already in the initial stage and is being refined ever since.Effective beginning 1996 the social security system rests on three pillars: (a) social insurance (pensions,health care and illness insurance and contributions toward the state employment policy, paid by employersand employees and still linked to the state budget (with exception of health insurance), (b) state socialbenefits (around 10 types, of which about one half is "means-tested" against the stipulated subsistenceminimum level deriving from the number of household members and their age), (c) social aid (forhouseholds below subsistence minimum level). For more details on the legal framework, including theamounts of various benefits, please refer to /4/.

After the fall of the totalitarian regime in 1989, the political transformation has been characterised by afull renewal of parliamentary democracy and the establishment of a Parliament, which at present has twochambers. The territory of the country is divided in 77 districts, each with the population of some 120thousand. The municipalities (some 6200) are autonomous and the Constitution provides also for theestablishment of regions - higher level administrative subdivisions. Two thirds of the population live inurban areas and 95 percent are Czech, 3 percent Slovak and the estimated share of Romany population is1.6 percent.

Regional economic and social diversification, which was in the pre-transformation period due to thedistortions caused by socialist planning almost non-existent, starts to emerge. But the economic activityrate of population 1) and partly also the wage levels in various regions still remain basically equal. Thereare major regional differences primarily in terms of the unemployment level and the number of jobopportunities as well as the economic performance. For more details please refer to /1/ and /3/.

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2. Basic socio-demographic trends

The state of the Czech population is characterised by grossly uneven age structure, due to the pastdevelopment. Starting 1994 population growth was replaced by reduction in population numbers due tonatural substitution, only partly compensated for by foreign immigration.

Until the end of the eighties the elderly accounted for a relatively low share in the Czech population, alongwith relatively high proportion of children. The ageing of population was slowed by high mortality in the40 plus age group and increased natality in the seventies. From the end of the Eighties onwards, the childpopulation started to shrink, while the numbers of the elderly went up only modestly, consequently theageing of population was only marginally important during this period. The nearest future will, however,witness major changes. Namely, the child population will, according to demographic projections, shrinkfurther and the elderly population will grow considerably. This trend will set on especially after 2000(necessitating a gradual postponement of the retirement age by 2 years for males and 4 years for females).These developments are already felt in the education sector, in terms of the reduced numbers of freshmenat specific education levels. It will also impact on the labour market. The numbers in the 25-29 and also30-59 age groups will increase rapidly (for details see Table 14 in the Annex). The numbers of populationin economic active age will, given the reduction of the lowest 15-24 age group, grow only modestly ascompared with the past and gradually start to stagnate (a major long term reduction is anticipated after2005).

3. Economic activity rate of population, economic structure and the labour market

Already in the past the structure of qualifications of the population systematically shifted towards higherlevels, primarily due to the coming of new generations (the new generations were always better qualifiedthan the old ones). The process continued also during the transformation period. In 1996 only one quarterof the population were basic; school graduates, whereas the most numerous group included secondaryeducation graduates (over two thirds) and higher education graduates amounted to 8 percent of thepopulation (10 percent of males and 6 percent of females). The structure of education of employedpersons was more favourable as compared with the unemployed and much more favourable as comparedwith the economically inactive (For more details please refer to Table 2 in the Annex).

The economic activity rate of population, quite high in the past, went down somewhat during thetransformation period. This reduction affected primarily groups, whose economic activity was previouslyhigh (i.e. specifically females and pensioners) and was up to a certain extent caused also by the growth ofthe grey unregistered economy. In spite of its reduction, the extent economic activity of females in theCzech Republic is still quite high, as compared with many other countries. For major economically activeage groups (30-49) it amounts to 80-90 percent and does not differ much from the level of economicactivity of males. (For details see Table 3 in the Annex.)

The real past reduction in employment exceeded that, which is suggested by data on the extent ofeconomic activity, as losses of jobs (estimated for the past period at 0.5 million, especially in agricultureand industry) were accompanied by growth of unemployment. The recent economic boom caused anincrease in employment and a sharp increase of foreign worker numbers. Foreign workers in the CzechRepublic work either as self-employed primarily in the services sector (especially the Vietnamese) or asemployees (the Slovaks and Poles in worker jobs in the mining and manufacturing industry especially inborderline areas, the Ukrainians in the construction industry, and the like). By the end of 1996 the numberof registered foreign citizens working in the Czech Republic approached 200 thousand. Along with otherillegal immigrant workers, the total number of foreign workers accounts for 5 percent of the total labour

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force. Unlike in many EU countries, the typical features of recent developments in employment is theemergence of new full time jobs. The share of part-time working people amounts to some 6 percent andtheir average workload is 25 hours a week (full time week is 40-42 hours). In most cases the shorter hourshave been requested by the employees themselves (for various personal, health and other reasons) and inonly less than one fifth of such cases of part-time work have been imposed by the employer(underemployment cases according to the ILO definition). About 4 percent of employees have a secondjob, usually to earn a higher income.

The unemployment is on average low, but there are major differences between various population groupsor regions. Overall, female unemployment exceeds male unemployment (by 1 percentage point). Thelabour force survey revealed that e.g. in the fourth quarter of 1996, given the overall unemployment rateof 3.5 percent, the unemployment in the age group 15-19 was around 14 percent (of which females 16percent) and in the age group 20-29 over 4 percent (females 5 percent). Unemployment of basic schoolgraduates is also high (10 percent), whereas for better qualified persons it is much lower (secondaryschool graduates around 3 percent, higher education graduates around 1 percent). Differences in terms ofunemployment between the 8 regions range from 2 percent (Prague) to around 7 percent (North Bohemia),while differences are much more pronounced between the 77 administrative districts (ranging from 1percent up to 9 percent).

The transformation, among other things, changed substantially also the sectoral structure of employment(see Table 18 in Annex). The shares of agriculture and forestry fell to a level comparable with that in mostOECD countries. The number as well as the share of secondary sector workers went down (specifically inmining and in most manufacturing branches). The services sector prevailed (its 52 percent share inemployment is though still below the OECD countries). In 1996 it contributed 54 percent to GDP (SNAdata), mostly in terms of marketed services while the share of public sector services was low anddiminishing (only some 10 percent of GDP). It was in the services sector where privatisation recorded thebiggest progress. This dynamic and previously relatively obsolete sector was ready to accommodate amajor part of workers released from elsewhere. Apart from the demand for traditional professions for theoperation of services (e.g. in retail and catering) the demand soared also for entirely new and highlyqualified skills for jobs especially in banking and other financial services, tax and accounting advisoryservices, information services, marketing and the like. In contrast, the demand for low qualified andmanual workers was very weak.

4. Institutional System of the Labour Market and the System of Education

In 1990 the fundamental directions for development of the institutional structure of the labour marketwere laid down. Still in 1990 the Ministry of Labour established its Employment Services Department,with a mandate to implement the state employment policy. Simultaneously, Labour Offices (LO) were setup in all administrative districts of the country. Thereby the foundations for the institutional system foremployment had been set up. In response to the growing demand for the mediating activities of LO, in thenext stage their branches and detached offices emerged. At present 77 LO have in total 157 branches anddetached offices in individual districts.

The Employment Services Department develops the overall employment policy and co-ordinates activitiesrelated thereto and also manages and supervises the LO. The LO maintain a register of job seekers, payout benefits to entitled recipients, mediate employment and provide information and counselling services.Based on an assessment of the labour market in the region, they also develop and implement measureswithin the framework of an active employment policy, issue work permits to foreigners and the like. (Fore

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more details refer to Annex 1. For more information on employment services and the active employmentpolicy refer to /4/ and /5/.)

Similar to other countries, the system of education in the Czech Republic consists of distinct levels ofeducation (for details refer to Annex 2 and to scheme of the education system in Annex). Within theinstitutional system of education (see /7/), the Ministry of Education holds a wide range of authorities andresponsibilities. It develops the governmental policy and strategy in education, drafts acts related toeducation and controls the implementation of state administration in education. Apart from this, theMinistry establishes and winds up state secondary and higher professionals (at present except schoolsestablished by the Ministry of Agriculture and the Police and Military schools). The Ministry allocatesfunds to individual districts, appoints and removes school directors and issues regulations concerningeducation.

At district level, the management of education is separate from state administration. The district SchoolOffices represent the middle level of management. By the virtue of law, these offices enjoy the major partof management and administrative power at the level of pre-school education, basic education and also atthe level of secondary schools. (As it is in the Czech education system, secondary schools cover the uppersecondary level of education. In this context „secondary school“ are used in the following text.) Thedistrict school boards have the status of autonomous bodies representing the parents and pupils.

The Czech School Inspectorate is a body of state administration, established by the Ministry to undertakeinspection activities.

As of 1990 higher education institutions enjoy full autonomy in determining their curriculum andorganisation of studies. They are decisively controlled by their autonomous academic bodies. Evaluationis performed by the Accreditation Commission established by the Czech Government. For highereducation institutions, the administrative role of the Ministry is reduced to their funding and theperformance of registration procedures.

The Ministry of Labour is responsible, through the LO, for retraining and its financing. Retraining coursesmay be offered by institutions accredited to that end by the Ministry of Education, or by secondaryschools.

Adult education, other than within the school system, is not controlled by any state administration body.

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CHAPTER II: CLARIFICATION OF PERCEPTIONS

The transition of young people from schools to working life is, in general, affected particularly by theeducation system and change in this system, conditions on the labour market and also demographicfactors. Over the last few years considerable changes have occurred in all these areas in the CzechRepublic. However, the success in placing school graduates in the job market has remained relativelyhigh. Thus, in characterising the process of transition of young people from school to working life in theCzech Republic, it is important to emphasise some specific features that are relevant for developments inCR compared to other countries and which the report makes an attempt to describe. There are a number ofthese features.

The first feature is connected with the period of time over which the transition of young people fromschools to working life has been studied. The period of time that is described in the report and in theframework of which the changes are examined, is relatively short: this usually consists of the periodbetween 1990 and the present time. Although a longer period of time would be useful in relation to someaspects of the transition of young people from schools to working life, this would not be relevant in theCzech Republic for portrayal of changes and developments. The main reason is the basic political,economic and social transformation that has occurred in the Czech Republic since November 1989. Thishas caused fundamental changes in all the circumstances under which the transition from schools toworking life occurs. In addition, conditions prior to 1990 are not conditions to which it would be useful toreturn or that could be used as a source of inspiration. These changes have affected all the principal areasaffecting the transition from schools to working life.

The second factor that should be explained consists of the age groups of young people that are the subjectof the report. In the Czech Republic the greatest number of young people leave school and enteremployment at the age of 18-19 years, after completing secondary education. The graduates of highereducation constitute a second wave of transition to the work process: students completing a bachelorcourse usually begin work at an age of about 22 years, while those with complete higher education usuallyenter employment at an age of 24 - 25 years. Thus, the report gives primarily information on these agegroups. In dividing young people into age groups, the following classification is most frequentlyemployed: 15-19 years, 20-24 years and 25-29 years.

A further aspect consists of increased motivation of young people to achieve the highest possible level ofeducation, which has occurred in the Czech Republic chiefly in the last few years. Interest in gaining ahigher level of educational attainment was always high in the Czech Republic; however, the economictransformation has increased this motivation. It has led to an extension of income ranges in favour ofemployees with high qualifications. It is useful to point out this increased motivation, because it leads to a

prolonging of the average length of education of young people2, and thus to a shift in the transition fromschool to working life to a higher age.

Specific conditions for the transition of young people from schools to working life are also connected withthe structure of education and the overall transformation of the education system in the Czech Republic.The upper secondary level of education (ISCED 3) has traditionally played an important role in education

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in this country; practically the entire population achieves this level and most young people then leaveschool for employment. Thus changes in this level of the education system and especially its relation tothe labour market have the greatest affect on the studied transition of young people from schools toworking life.

Liberalisation of the education system after 1989, including the emergence of private schools (which getpublic financial support), has permitted schools to contribute actively to changes in the curriculum and toextend the spectrum of study programmes offered. A number of innovative elements have been introducedinto the educational structure on the basis of experimental testing, and have increased variability ofeducational pathways and mobility of students across them. In this way, better conditions have beencreated for young people who wish to achieve a higher level of education and to extend the number ofyears spent in study.

The report also deals with policies that are intended to facilitate the transition of young people fromschools to working life, i.e. programmes and measures initiated by responsible institutions, especially inthe sector of education and employment. However, the number of such programmes in the Czech Republicis not great. It should be pointed out here that this is true especially because the transition of young peoplefrom schools to working life occurs in the Czech Republic without serious difficulties, so that more activeintervention has not yet become necessary. This is a consequence both of the low level of unemploymentin general, as well as of the low unemployment level amongst young people, as well as the relatively shortperiod of time over which young people obtain employment. More serious difficulties are encountered inconnection with young people without qualifications, especially those below 18 years of age and theRomany population, who frequently belong amongst the long-term unemployed. Thus, the content ofprogrammes dealing with unemployment amongst young people is increasingly concerned with thesegroups.

The study of the transition from schools to working life from a regional viewpoint is similar. Althoughthere are undoubtedly regional differences in the Czech Republic, they are not significant when comparedwith the national average. This is true both for the degree of interest of young people in study as well asfor their economic activity rate. Thus, the report frequently contains information describing conditions inthe country as a whole rather than in the individual regions. More significant regional differences appearespecially in unemployment levels and thus surveys of unemployment amongst school graduates areusually given as regional cross-sections.

Demographic developments affect the transition of young people from schools to working life in the sensethat the different numbers of young people of various age categories increase or decrease the ability toachieve a certain level of education in relation to the given capacity of schools. It also applies to thepossibility of gaining permanent employment on the job market in the framework of the given level ofdemand on the labour force. Since the beginning of the 90s in the Czech Republic, i.e. almost over theentire study period, the number of young people in population years (cohorts) has decreased. At thepresent time, the decrease is almost the greatest amongst the age categories entering secondary schools orthe lowest grades in these schools.

In order to take into consideration all the aspects of the transition of young people from schools toworking life, it would be necessary in some cases to carry out special studies and research. However, suchan approach requires more time than was available for carrying out this work. Every attempt was made inpreparing this report to utilise all the available information. During the year to come, an other sociologicalstudy will be initiated, concerned with the graduates of all school levels, the results of which couldsupplement the conclusions of this report at the beginning of next year.

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Further necessary explanations of a methodological or any other nature are given in the text of theindividual chapters or in the references.

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CHAPTER III: CONCERNS ABOUT TRANSITION PROCESSES AND OUTCOMES

1. Characteristics of study and employment participation of young people

The period of transition of young people from schools to working life in the Czech Republic is determinedto the greatest extent by the organisation of the education system (see the scheme of the education systemin Annex No. 2). Basic school lasts nine years (this consisted of eight years up to 1995)3. Children beginthis education at the age of 6 years and complete it at the age of 15. Thus, the first opportunity fortransition school to working life occurs at this age. However, only a very few children select this option. Afurther possibility is to leave school after an additional two years (from vocational branches where theyoung people are instructed for less qualified skills); once again, only a very few children make thischoice, and the great majority continue their education. After three years of education, i.e. at the age of 18,young people attending secondary vocational schools complete their education (i.e. in vocational brancheswithout Maturita); at the end of the fourth year, all those who complete their secondary-school educationat the age of 19 in all three principal kinds of secondary schools enter the job market (i.e. graduates of"gymnasiums", graduates of secondary technical schools and graduates of vocational schools withMaturita). The transition from schools to working life after completion of tertiary education occurs after afurther three, four, five or six years.

The transition of young people from schools to working life in the Czech Republic can be described interms of statistical information relevant to the two chief characteristics of this transition: first, the numberof young people (or the percentage of the population year) and the age at which they pass from school toworking life and, second, how this transition occurs (i.e. how fast it is, what problems are encountered,etc.).

After completing compulsory school attendance, at the present time 96% of basic school graduates(ISCED 1 and 2) continue their education (according to information obtained from the Ministry ofEducation). These young people enter one of three kinds of secondary schools (ISCED 3). Currently,about 15% of those entering the secondary level of education enrol in four-year secondary generalschools ("gymnasiums"), about 38% enter mostly four-year secondary technical schools and about 47%enter mostly three-year secondary vocational schools (see Table 12 in the Annex). The students of allthese three kinds of secondary schools mostly complete their education, as the level of drop-out in thiskind of study is very low. Calculations carried out by the Ministry of Education indicate that, of thoseaccepted in gymnasiums, about 95% complete their studies, compared to 93% of those in secondarytechnical schools and about 90% of those accepted for study at secondary vocational schools. The lesssuccessful students may continue their education at the upper secondary level of education. Students withpoor results at the basic school may continue to prepare for less difficult careers in vocational trades withspecially modified curriculum at vocational schools. A further option (beginning in 1995) is 1-3 yearpreparation for carrying out simple work in newly founded practical schools. Students who completedtheir compulsory school attendance at special or auxiliary schools may attend these schools. Disabledyoung people (suffering from physical and sensory disabilities) may attend special schools. These schools

(with the exception of schools for the mentally impaired4) provide students with education corresponding

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to the level of the equivalent school for the general population, but employ special pedagogical methods toachieve this goal.

While there is a low level of transition to working life after completing basic school (about 4% of the agegroup), the greatest proportion of young people in the Czech Republic leave school for employment aftercompleting secondary education. In 1995, about 27% of nineteen year old students were accepted intoschools at the tertiary level (ISCED 5, 6, 7). Thus, about 73% of nineteen year-olds who completedsecondary school left school for employment. Of those who went on to a higher level of education, about

one quarter began non-university education5

(ISCED 5), one quarter entered mostly three-year bachelor'suniversity educational study (ISCED 6) and half began mostly five-year university education (ISCED 6).The participation rate of young people in education system is depicted by the graphs in the Annex.

The degree of involvement of young people in study also corresponds to their economic activity rate.Statistical data from labour force surveys in the autumn of 1996 (see Table 8 in the Annex) indicate that,of the total number of fifteen year-olds, only 3% were economically active. A total of 39% of eighteen-year-olds were economically active, as this group already includes the graduates of three-year secondaryvocational schools. More than one half (56%) of nineteen year-olds were economically active, comparedto 68% of twenty year-olds. This figure includes all secondary-school graduates not continuing theirstudies. In the further age groups, the share of employed again increased above 70%, so that, for example,for twenty-four year-olds this figure equalled 75%, for twenty-eight year-olds, 81%, and, for twenty-nineyear-olds, 84%. The age group over twenty years also includes the greatest share of persons (women)taking care of children at home, as well as the largest share of employed persons. The share of women onmaternity leave in the 20-24 age group is decreasing (this share equalled almost 13% in 1996) and is evendecreasing in the 25-29 age group. In contrast, the number of women studying in both these age groups isincreasing (see Table 7 in the Annex).

Important information on the transition from schools to working life is also provided by characteristic onunemployment amongst school graduates6, because it reflects the success encountered by these youngpeople in searching for and finding employment. In April of 1996, 4.6% of the graduates of secondaryvocational schools were unemployed, compared to 2.9% of the graduates of secondary technical schools,2.8% of the graduates gymnasiums and 1.5% of higher education graduates (see Table 22). Thisinformation confirms the generally valid phenomenon that, the higher the level of education achieved, theless likely young people are to be unemployed.

All the data presented so far indicate that the transition from schools to working life in the Czech Republicis mostly smooth and not characterised by substantial difficulties.

2. The impact of economic transformation and social changes on transition models

The conditions for the transition from schools to working life have changed in the Czech Republic in the90's, especially as a result of the economic transformation. The most marked general change wasabandoning of the system of a centralist directive control of the number and structure of students insecondary schools and higher education institutions and of the number of employees in enterprises. Therapid shifts of employees between the sectors and within individual branches also had a great impact; it isestimated that 40% of the labour force has changed jobs over the last five years. Professions, that werenewly required by the labour market and are also better remunerated, have become attractive. The numberof newly founded private companies is growing rapidly, especially small and medium-sized companies.Young people must adjust to these changes in their choice of study and they must take into considerationemployer requirements.

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Privatisation of enterprises has affected the development of secondary vocational schools, in theframework of which they have become separated from the business sphere and the state has accepted theresponsibility for paying the costs of the education of those students who are not being prepared for aspecific company. As a consequence of these changes, company interest in financing the preparation ofapprentices has decreased. Simultaneously, under the effect of the expansion of other educationalopportunities - especially at secondary technical schools - interest on the part of students in enteringapprentice branches has decreased.

The work motivation of people has increased, as has the motivation to achieve higher earnings, which isdependent to a considerable degree on the educational level attained. Expansion of study opportunities, thestimulus of higher earnings, etc. on the one hand and the simultaneous increase in the cost of living,especially the cost of housing, on the other hand, have also led to a situation where young people postponethe establishing of a family and having children to an older age. These influences are also apparent in thetrends in the characteristics of the transition of school graduates from schools to working life.

Changes in the age and ratios of young people leaving school for employment

The participation of the individual age groups in upper secondary education has rapidly increased duringthe nineties. There was an increase by 8 percentage points between 1990 and 1995 (see Table 11 in theAnnex). This is reflected in the increasing attempts of young people to obtain a higher level of educationalattainment and thus better employment with higher pay.

There has also been a change in the proportion of educational routes chosen in the framework ofsecondary education or, to be more precise, in the framework of vocational education. (The proportion ofyoung people entering secondary general education- gymnasiums - was roughly the same at the beginningof the reform period as at the present time and has remained at about the level of 15-17% of studentsentering secondary schools over the last five years.) There has been a substantial increase in the numberof young people entering secondary technical schools. In the 1990/91 school year, these studentscorresponded to about 23% of the total; this figure had increased to about 38% by the 1995/96 schoolyear. The opposite trend can be observed amongst young people entering secondary vocational schools.This share equalled about 60% in the 1990/91 school year; five years later, in the 1995/95 school year, itequalled only about 47% (see Table 12 in the Annex). As secondary technical schools provide mostlyeducation rounded off by Maturita which allows graduates to apply for acceptance for higher education,this trend reflects the attempts of young people to achieve a higher level of educational attainment.

Changes in the employment structure have also led to changes in the structure of students by studybranches. The number of students in technical branches has decreased and the number in economic andother branches of the service sector have increased (see Table 13).

A similar trend expressing attempts to achieve the highest possible level of education has also appeared inthe form of interest in higher education following completion of secondary education. According toinformation obtained from the Ministry of Education, towards the end of the 80's about 30% of eighteen-year-olds were interested in obtaining a higher education (expressed as the number of applicants). At thepresent time, this figure has increased to about 40%. However, because only some applicants are acceptedfor study, the share of those accepted is lower (approximately half of all applicants); however, thesenumbers are also growing. In the period of interest, this share increased from about 15% in 1991 to about21% of eighteen year-olds in 19957 (see reference ¨/7/).

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Changes of economic activity rate of young people

Since the beginning of the 90's, the ratio between studying and employed young people has changed. Theshare of economically active persons in the 15-19 age group decreased over the 1991-1995 period from34.4% to 25.6% (labour force sample survey). This figure decreased from 73.2 % to 71.4% in the 20-24year age group and from 83.3 % to 79.0% in the 25-29 year age group. These shares have decreased forboth men and women. However, the share of economically active women is less than for men. The sharesdecreased as follows for all these age groups:

Table 1

Share of economically active in %

Age Group 1991 1996Men Women Men Women

15-19 35.4 33.4 28.3 22.620-24 88.3 57.4 84.2 58.125-29 98.0 68.0 96.3 60.9

More detailed information is given in Table 7 in the Annex.

The main reason for the lower share of economically active women is maternity leave. However, theproportion of women on maternity leave decreased considerably over the 1991-1996 period, from 30.2%to 12.9% in the 20-24 year age group and from 26.5% to 18.5% in the 25-29 year age group (see Table 7in the Annex). This reflects attempts of young people to shift the birth of children to an older age and alsothe decreasing birth rate in the Czech Republic.

Some social changes

The transition of young people from schools to working life in the Czech Republic also reflects a numberof social changes. Although these changes are more difficult to study than economic changes because theyoccur more slowly, they are also discernible in the period since the beginning of the 90's. One of the mostimportant changes is differentiation of the population or rather of employed persons on the basis ofincome. Up until the end of the 80's, the Czech Republic experienced what was probably the greatestequalisation of wages of all the former Communist countries. In connection with the economic reform, theincomes of employed persons began to become differentiated and this process is continuing. Averagewages are increasing, and this includes real wages (separated from the impact of inflation) and incomesare becoming more differentiated (see Tables 5 and 6). All this motivates young people both to achievethe highest possible level of education and also to gain further abilities that are required of applicants forthe positions of employees with higher wages (e.g. language skills, the ability to work with a computer,working experience, etc.).

Students are increasingly delaying the completion of studies in order to participate in study stays or to beemployed for a certain period of time. This is true almost exclusively of students at higher education,while such cases are quite exceptional amongst the students of secondary schools. At the present time inthe Czech Republic a considerable share of higher education students spend more than five years at study.The ever increasing number of contacts with foreign countries also contributes to this phenomenon.Estimates based on surveys amongst students indicate that 45% of students are able to accept offers of

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professional stays abroad (far from all of them actually take advantage of these offers). Thus, for highereducation students, the transition from schools to working life is shifted to a higher age and employmentactivities are being increasingly incorporated into the period prior to completion of studies, so that theborderline between school and work is becoming less sharp than formerly.

The increasing importance of education in social differentiation in Czech society and the increasingvariability in the educational programmes of secondary schools and higher education institutions alsoleads to greater individualisation of educational pathways. The importance attributed to education in theCzech Republic is reflected in the results of the Eurodelphi international survey, in which Czech

respondents attributed the greatest value to education of all the 16 countries studied8 (see reference /8/).

Economic activities of young students

Cases where young people are simultaneously employed during preparation at school differ in the CzechRepublic for students of secondary schools and higher education.

Employment is very limited amongst the students of secondary schools. Part-time employment whilestudying in the CR is lower than the average figures for the OECD countries. Recent trends in the CzechRepublic place increasing emphasis on this aspect. In the 15-19 year age group in the Czech Republic, theproportion of students who are simultaneously employed decreased over the 1993 - 1996 period from4.5% to 2.4%, while this share in the 16-19-year age group in the OECD countries equalled 16% (seetable 9).

Where the students of secondary schools obtain income from employment, this is almost always special-opportunity, occasional work carried out for the sake of the income, where the relationship of this work totheir future career is usually only marginal or non-existent. Secondary school students are more frequentlyemployed during their holidays. This work usually consists of less demanding employment that can becarried out without difficult preparation.

The higher education students tend to be employed simultaneously with studying far more frequently. Asurvey in 1995 showed that about 80% of the students are employed (regularly or occasionally) duringtheir study (see reference /9/). The motivation is often similar to that of secondary school students, i.e. toobtain an income without any connection to future employment while carrying out less qualified work.However, to a certain degree (especially amongst students of higher grades), this employment activity isconnected with the future employer. In some cases, university students have their own private businesses.This is connected far more closely with their selected field of study and future profession and alsofacilitates the transition of young people from schools to working life.

In recent years, university students tend increasingly to prolong the period of their study. However, nodetailed investigation has yet been made of this trend to permit better description and analysis of itsrelationship to employment during study.

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3. The impact of the education system on the employment of young people

The most important characteristics of the education system that affect models of the transition of youngpeople from schools to working life in the Czech Republic include the following factors:

• the changes in the length of compulsory school attendance and basic education,• the changes in the structure of education, especially in the ratio of general and vocational education,• the quality of preparation for practice, degree of preparation for further education,• credibility and flexibility of certification processes,• premature departure of students from the education system prior to gaining the required qualifications• contact with practical employment during study, practical experience of teachers and career guidance.

Length of initial education

The education system consists of relatively independent degrees of education amongst which theoriginally sharp boundaries between the individual stages and kinds of schools are diminishing with theprogressing transformation of this system, so that in a great many respects the system is becoming moreintegrated and accessible. The shortest duration of direct progress from basic education to the highestscientific level is 20-21 years.

A fundamental change in the length of initial education was brought about by the decision thatcompulsory nine-year school attendance should be implemented in its entirety at basic schools (in1996/97). This led to a prolonging of basic school education by one year as, prior to the school year1995/96, students could transfer to secondary schools from the 8th grade of basic schools. Most of themtook advantage of this possibility. The inclusion of 2-3.5-year higher professional schools in the educationsystem (with simultaneous abolishing of post-Maturita study) and prolonging of the length of universitystudy from 4-5 years to 5-6 years (in 1990) has also contributed to prolonging of the length of study.

In addition to legislative changes in the education system, the average period of study has also beenprolonged as a consequence of the fact that students prefer a longer type of study than before. It is thecase of increasing share of students in secondary schools with Maturita (at least 4 year study) as comparedwith the share of students in branches without Maturita (2-3 years study). Students also tend to combineand supplement study at individual schools in a more variable manner than formerly. This is favoured byexpansion of the range of further follow-up education and tertiary education, which facilitate both thetransition to working life and also increase the ability of students to pass through the education system.The prolonging of the real length of university study is apparently also caused by the fact that a greatmany students study at several faculties, during study in one field or after completing this study they beginstudy in a different field, they combine study with employment, etc. These changes allow students tocreate their own individual study pathways.

As a consequence of these changes in the duration of education, an ever increasing share of young peopleremain for longer periods of time in the education system and their transition from schools to working lifeis delayed.

On the other hand, in connection with the shortening of the period of compulsory school attendance,problems are beginning to appear in the transition to working life of unmotivated young people withoutany qualifications whatsoever. Graduates of grade 9 are no longer compelled to attend school and canbecome a serious problem group in the labour force, which is practically unemployable prior to 16 yearsof age. So far, this problem has not emerged to any degree, as most basic school graduates were at least

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compelled to continue vocational education for low qualified skills. However, it is expected that thepreviously minimal percentage of this population localised mainly in problematic regions (NorthernBohemia, Northern Moravia) could increase substantially.

The structure of education, ratio of general and vocational education

The predominance of vocational education at the secondary school level has so far had a relativelyfavourable impact on the transition of young people from schools to working life. The quite broadlyconceived vocational preparation allows young people an earlier direct entrance into the labour marketand demonstrates their high flexibility. However, it has been found that, as the demands of the labourmarket increase, a general education will become increasingly important. From this point of view, itseems essential to provide greater support for general education as a foundation for later professionaleducation at the post-secondary or tertiary level.

In spite of the development of gymnasiums, especially multi-year, they have not come to occupy a moreimportant position in the framework of secondary education. While in the school year 1990/91, 16.7% ofstudents were accepted for general education and 83.3% were accepted into vocational schools andtechnical schools, the proportion of those receiving a general education decreased slightly in 1995 to14.7% of students in the overall profile of those accepted into secondary schools (see Table 12 in theAnnex). In the framework of vocational education, there was an expansion of secondary technical schoolswith Maturita (frequently private schools). These schools also absorbed students with decreased interest insecondary vocational schools. Thus, students expressed their interest in obtaining a vocational educationwith Maturita, which provides a broader range of opportunities for future careers, compared with aapprenticeship certificate and also allows graduates to directly enter employment if they are not acceptedat higher education.

Similarly, the structure of post-secondary and tertiary education changed greatly after 1989, especially inthe sense of vertical differentiation. The newly introduced bachelor's study does not have a long traditionin Czech education and thus the first graduates will encounter certain difficulties in connection withrecognition of this degree amongst employers and with financial remuneration. In contrast, the firstgraduates of higher professional schools will find ready application as a consequence of extensiveprofessional practice and contacts with employers during study. Nonetheless, employers are only nowbecoming accustomed to these levels of education - graduates thus sometimes encounter difficultiesassociated with obtaining higher positions that they could occupy with of their qualifications. Theintroduction of non-traditional levels of qualification will temporarily complicate the transition of theseyoung people to working life, in spite of their high qualifications.

Quality of preparation for work, preparation for life-long study

During the transformation process, the structure and content of the education system were adapted to thenew requirements of qualified work. This has contributed to facilitation of the transition of young peopleto working life, so that serious difficulties have not been encountered in connection with applicability as aresult of obsolete qualifications. Diminishing of number of students has occurred in cut-back branches(i.e. agriculture, the mining industry and some other branches of industry subject to decreased productionat the present time), with a simultaneous expansion of the spectrum of educational opportunities orientedtowards careers in branches „in demand“ (i.e. the tertiary sector, the construction industry). However, thisprocess is uncontrolled, is affected by interest of applicants in certain branches of study and is thuscharacterised by unbalanced fluctuations (e.g. a lack of applicants in the technical branches), caused

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mainly by current conditions in the labour market, without any long-term tendencies connected withexpected trends.

Vocational education is characterised by a high degree of curriculum innovation based on changes inbranches for which students are preparing and according to the needs of private businesses (teachingmaterial concentrating on marketing, management, finance, preparation for small-series production andcraft technologies, for activities of a commercial character and for activities in the services sector).

In addition, vocational education is becoming more generalised, increasing the flexibility and applicabilityof graduates in the labour market. While prior to 1989 the educational programmes in secondaryvocational schools and secondary technical schools were primarily oriented towards vocational knowledgeand experience, at the present time emphasis is placed on a broader student profile in vocationalpreparation. The share of general educational subjects varies in the individual branches from 20% to 50%,with shifts in the following directions:

− educational programmes in vocational education leading to Maturita are gaining a moregeneral character and are increasingly considered to constitute a basis for further specialisededucation. This is reflected in changes in the curricula of these educational programmes (e.g.the appearance of combined technical-economic branches or the appearance of technical andeconomic lyceums).

− educational programmes in vocational education leading to apprenticeship are beingmodified to include a greater amount of practical preparation, with manifestation of attemptsto ensure that the manual skills gained have immediate applicability in a specific companyand also that they are of a more generally applicable character in the framework ofEuropean Union. More specialised education in vocational branches complicates thetransition to practice, especially amongst graduates that are not sponsored by companies andwho do not have a direct connection with their future employer. A significant share of thesestudents continue in follow-up education.

Most higher education institutions are undergoing transformation of the content and organisation of study,which is becoming more flexible in relation to the changing conditions in society and to the labourmarket. Study is generally divided into blocks or cycles, with a great portion of elected subjects,especially in higher grades, where this share corresponds to up to 40% of the courses offered. Study plansare becoming more variable - most schools allow students to create individual plans, so that they cancombine their study obligations with some kinds of employment. Inter-disciplinary study is becomingever more common. These possibilities provide further support for the development of external forms ofstudy.

Drop-outs before obtaining qualification (consequences for entrance into the labour market)

In the Czech Republic young people do not frequently leave the education system prior to obtainingqualification because the education system is relatively broad at the secondary schools and provides theopportunity to continue in a different branch in a less difficult field of study or in special schools (seechapter III.1).

Only a small share of young people remain completely unqualified. These are 15 year-old graduates ofbasic schools or special basic schools, who enter the labour market directly and are often immediatelyregistered at the Labour Offices. This group is supplemented by those who did not complete the secondary

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school and who decided not to further their education. In regions where the population contains a largerRomany fraction, a considerable part of this group consists of Romany students, who frequently do noteven complete basic school.

In recent years, the share of unqualified young people aged up to 29 years who have only basic educationand no longer participate in education has a decreasing tendency (from 6.6% of the total number of suchyoung people in this age group at the end of 1993 to 5.9% at the end of 1996 - see Table 10 in the Annex).There has especially been a decrease in the share of unqualified young people in the 25-29 year age group.

Simultaneously, it is apparent that, even with the very low unemployment level in the Czech Republic, theopportunities for unqualified young people to find jobs is decreasing - while towards the end of 1993almost two-thirds of these people were employed, towards the end of 1996 only slightly more than halfhad found jobs (information from labour force surveys). The unemployment amongst unqualified youngpeople up to 29 years of age, measured in relation to the overall number of unqualified, economicallyactive young people in this age group, varied around 20%. Young women without qualifications veryfrequently remain at home and their return to the labour market is very difficult9.

When unqualified young people are included in the register of those seeking work, it is usually onlypossible to find a limited number of temporary jobs for them; however, there are considerable regionaldifferences. The greatest number of registered unemployed persons under 18 years of age live in NorthernMoravia and Northern Bohemia, i.e. in regions where the unemployment levels are highest. Unemployedyoung people with basic education frequently become long-term unemployed10.

The indirect consequences of young people leaving school prior to obtaining qualifications include: lackof ability (and lack of interest) in retraining (gaining qualifications), attitude of social isolation and socialdisintegration, creation of social groups of long-term unemployed at the fringes of society, absence ofworking habits, which they are frequently incapable of forming.

Credibility and flexibility of certification

Generally binding certificates are obtained in CR only in the framework of the school system. Certificatesawarded at the individual stages of the education system (see Annex No. 3) are issued on the basis oflegislatively defined examinations with state-wide validity and are recognised by employers. Schooleducation forms the basis for achieving a certified (recognised) level of education and those interested inincreasing their formerly achieved level of education again enter educational institutes in the frameworkof the education system.

Graduates of courses of further education (held by employers or private institutions) outside of the schoolsystem obtain certificates of attendance that have varying degrees of applicability. Certificates fromcourses held by employers are valid within the company; certificates from courses out of school systemare valid throughout the country provided that the qualification activities are certified by the Ministry ofEducation or provided that they are based on valid state standards or sectoral regulations. Schools mustalso apply for certification of educational activities that are not compliant with the founding certificate.

Retraining courses for unemployed persons registered at the Labour Office are held at institutions withcertificates issued by the Ministry of Education. Documents on retraining are valid throughout thecountry, but are not analogous to certificates awarded in the school sector and employers do not alwaysfully recognise them.

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The greater degree of independence of schools following 1989 has permitted schools a greater degree offreedom in determining the contents of final examinations on the basis of which certificates are issued.This has led to greater certificate flexibility from the standpoint of changing vocational and studybranches. Simultaneously, however, it has led to greater confusion in the entire system of issuingcertificates. Difficulties are also encountered in insufficient comparability of the outputs in the individualbranches of study at various schools. Question of standardisation, especially of Maturita examinations, hasreceived considerable attention. Participation of employers in conceiving and carrying out tests, so that therequirements on graduates are brought into relation with work applications, would lead to greatercredibility of certificates.

In practice, the last few years have witnessed a decrease in the importance of formal qualifications withthe exception of highly qualified careers requiring university education. In accord with labour legislation,the recognition of the qualifications of employees lies within the employers rights. The legislation valid inthe past, which determined suitable qualification for particular careers, has been abolished. At the presenttime, the basic structure of relations between careers and branches of education has been retained in theform of recommendations (see e.g. the State-wide Survey of Careers, Ministry of Labour, 1993).However, there are some exceptions, especially in the area of specific professional qualifications (e.g.handling of poisons), in operating small businesses (regulated businesses), and free-lance professions(architects, medical doctors, lawyers), where qualification requirements are established by bindinglegislation and in the absence of which practising of the given careers is forbidden. Certain qualificationrequirements are also binding for the budgetary and contributory (state) sphere, especially in the healthcare and education sector.

Flexibility in issuing certificates has affected the opportunities for young people to leave school foremployment during a period of intense transformation changes in the economy, which has witnessedmajor structural shifts in the labour force. However, at the present time, the negative aspects ofinsufficient comparability and clarity in the certification process for employers has become an importantfactor, complicating placing of graduates. This has also appeared significantly especially in connectionwith aspects of international comparability and mobility of the labour force. The limited validity ofcertificates obtained in courses outside of the school system complicates the continuity between initial andfurther education and limits the variability of educational pathways for young people.

Acquaintance of young people with practice during initial education

The pupils of basic schools are not prepared to enter the labour market, as they are expected to proceedinto the sphere of secondary education. Thus, they are only indirectly acquainted with practice, either inthe framework of their lessons or through occasional excursions. This knowledge tends rather towards thechoice of a career through the selection of suitable further educational pathways.

In the sphere of secondary education, young people become acquainted with job opportunities in variousways, which are especially dependent on the type of education.

Acquaintance with the working environment is most extensive amongst those participating in vocationaleducation. In vocational courses, about one half of the educational time is devoted to practical training.This usually occurs in the first year in workshops or school facilities and continuation depends on theapproach of the school and training capacity11.

Practical experience in enterprises is designed for preparation of students for technical careers insecondary technical schools. The share of such training differs according to the character and

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requirements of the field of training, but lasts a minimum of two weeks in the 2nd and 3rd years ofstudy12.

In the secondary education system, the students of "gymnasiums" become least acquainted with workingopportunities. Practical experience exist only where these students are employed during school attendance.This employment activity is not extensive and tends to be occasional.

In higher professional schools a considerable emphasis is placed on inter-connection of teaching withpractical applications. Better quality and more extensive study programmes often include a half-year ofprofessional practice in a company, with the primary purpose of achieving inter-connection between thestudent's theoretical knowledge and practical applications.

Higher education (university study) also creates conditions for acquainting students with real workingenvironments corresponding to the field of study. The share of such practical experience depends on therequirements for becoming acquainted with the given workplace13.

Employment of students during studies can be considered as a certain form of working experience.According to surveys, 80% of students within higher education are employed in some manner duringtheir study programmes, of which 60% have occasional jobs, 15% have only regular jobs and 5% haveboth regular and occasional jobs. However, it is not clear to what extend this employment is to their fieldsof study. The operation of private businesses is often connected with the student's field of study. Duringtheir study programmes, 4% of students operate businesses in areas connected with their field of study and2% operate businesses in other fields.

Practical experience of teachers and knowledge of conditions and requirements on the labour market

The teachers at various types of schools are familiar with the future workplaces of students in connectionwith the subjects that they teach and with the overall teaching programme of the given school. Conditionsin basic schools and in gymnasiums are different from those in vocational schools (i.e. technical andvocational schools). Those teaching at universities find themselves in a special situation, where a numberparticipate in active co-operation with the work of the institutions in the field for which their students arebeing prepared.

The teachers of basic schools tend to have little knowledge of the labour market and they also have littlepractical experience. This is a result of both the means of preparation of these teachers and also theirminimal contacts with the working environment. In order to ensure provision of information to the pupilsof basic schools in opportunities and difficulties connected with entering the labour market, guidancesystems have been created (see below). Conditions in "gymnasiums" are similar.

The level of practical experience amongst the teachers of vocational education varies greatly. Due to thecurrent autonomy of schools, conditions are highly dependent on initiatives on the part of the schoolmanagement. According to empirical studies a predominant number of teachers of vocational subjectshave 6 to 10 years of experience prior to beginning teaching and continue to attend vocational courses.The schools attempt to co-operate with employers. Co-operation with organisations-representatives ofemployers is less extensive; on the other hand, Cupertino with the Labour Offices tends to be more active.

Teachers gain practical experience and knowledge in ensuring practical training of their students, wherethey again come into contact with operations in enterprises, and are able to become acquainted with thetechnology employed, with employment conditions, etc. Direct contacts of students with the labour world

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could also be mediated by external teachers. About 11% of teachers at secondary vocational schools areexternal teachers, and this figure increases to up to 28% at higher professional schools. Some of these arehowever university teachers.

External experts participate in educational programmes in higher education and represent to about 16% ofall teachers. External teachers are also members of the Science Committees of a number of schools andfaculties. However, it is not clear how many of them are actually representatives of labour opportunitiesand how many are teachers from other universities or research workplaces. The major co-operation ofuniversity teachers with employers occurs rather through professional interests and contacts, etc.

Career Guidance

The successful transition of school graduates to working life requires not only an adequate education, butalso their eagerness and willingness to enter the career for which they are prepared. The school mustprepare the student for responsible choice of educational pathways and a professional career, and mustprovide the student with sufficient knowledge and competence. In making their decision, students requireinformation, motivation and guidance.

At the present time, educational programmes at basic schools include information on careers, the labourmarket and employment, Labour Offices, and legal aspects of employment, usually provided in the subjectof civil education. Further relation to this information, a basic overview is provided, taking into accountthe type of school (practical, secondary technical, vocational) and the field of study (general education,vocational education). The number of hours that the school devotes to this subject depends on the decisionof the school. In some of the more problematic districts, School Offices, in agreement with the LabourOffice, recommend inclusion of the non-compulsory subject "Career Education" (e.g. Most).

Pedagogical and Psychological Consulting Centres constitute a basic link in guidance strategy in theeducation system in district cities. Their work is mostly concerned with psychological and specialpedagogical care for children of the age of 3-19 years. They provide guidance in the choice of educationand career pathways on the basis of a request from the school and the parents of the children. They placethe greatest emphasis on gifted students, students with developmental problems and those at risk for poorsocial adaptation.

A further link in the guidance programme in the education system consists of guidance counsellorsworking at all types of schools. Their role in the sphere of career selection consists primarily of enablingthe student to come into contact with special guidance units. Some schools have instituted schoolpsychologists or special school psychologists.

In the interests of approximation to the practice common in European countries, the greatest responsibilityfor guidance in the choice of an education and a professional career is being transferred from theeducation sector to the labour sector. Information Guidance Centres for Career Selection (IGCCS - IPS (inCzech)) have been established at Labour Offices, providing information on educational opportunities andvocational preparation, on educational facilities, forms of study, conditions on the labour market andservices for unemployed youth (e.g. Job Clubs at Labour Offices). These centres work with high-riskgroups of children and young people. At the present time, the professional guidance system, based mainlyin the sector of the Ministry of Labour, is recognised as being far more effective than the previous schoolcounselling system.

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At the present time, Ministry of Education and Ministry of Labour have signed an agreement onCooperation and transfer of information and on provision of guidance services in career selection. Theschool sector, i.e. educational counsellor or school psychologist, pedagogical-psychological counsellingcentres and special pedagogical centres will continue to provide guidance services in the sphere of choiceof an educational pathway and a professional career. Simultaneously, they will emphasise determinationof the individual abilities of children for further study or professional preparation and harmonising ofthese personal abilities with the interests of the student. The Labour Office IGCCS will be more suited tofinding an appropriate career and positioning in the labour market, as they have more detailed and up-to-date information.

Higher education counselling is developing less evenly without central intervention and, for the present,without legislative assistance outside of the guidance system organised by the school and labour sectors.These guidance centres provide services especially in the area of study orientation and psychologicalassistance. Professional guidance, or the provision of assistance in the search for a potential employer,does not predominate at the present time in the work of higher education guidance centres. This is becauseof the fact that the unemployment level is very low amongst higher education graduates and mostgraduates find places without the assistance of guidance centres (see ref. /10/).

4. Conditions on the Labour Market for Employing School Graduates

Prior to 1989, school graduates passed directly to their first employment in the vast majority of cases.Enterprises often owned their own vocational training centres and also often provided company stipendsto students, in order to attract them to work in their company. Following 1989, with the creation of alabour market, when open unemployment appeared, the unemployment level was higher amongst newschool graduates than the average for the general population, but did not attain extreme values.Demographic trends, developments in labour force supply and in employer demand, which affected theemployment of school graduates, were changeable and in some respects contradictory at that time.

The Demographic Context

Demographic development as a consequence of the population waves in the 70's was the cause of theconsiderable unevenness in trends in the number of school graduates in the individual years. The greatestnumber of people leave school after completing their secondary education, when three quarters ofgraduates enter the labour market. This age category reached peak numbers in 1993 and since then hasdecreased relatively rapidly by about 2.5% annually; this trend is expected to become even moreremarkable in the future. Young people at the university graduation age (24 years) are expected tocontinue to increase in the second half of the 90's (see Table 17 in the Annex).

As the number of graduates of secondary schools entering the labour market decreases, the probability ofsuccessful transition to working life will increase. On the other hand, the proportion of young people inthe 25-29-year age group will greatly increase in the age structure of the productive age population (seeTable 16 in the Annex). Most of these young people will already be established in the labour market andcould, to a certain degree, block positions for new graduates, especially if the dynamics of economicgrowth were to decrease or if technological transformation were accelerated.

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The Position of School Graduates in the Total Labour Supply

Although the outnumbered population years of school graduates began to enter the labour market at a timeof sharp decline of the economy (by about 25% between 1990 and 1993) and a decrease in overallemployment (by about 10%), the unemployment level has not changed much. Decreased demand for thelabour force without a great increase in unemployment was made possible at this time by a decrease ofeconomic activity rate of some groups of population (see Chapter 1). It can be expected in the future thatthe level of economic activity will remain constant or increase slightly, especially as a consequence of anincrease in the retirement ages. In this connection, the possible decrease in the job supply will no longerhave any impact.

Estimates of future development of the labour supply to the year 2000 vary around 0.5% annually (theestimate takes into consideration longer school attendance as a result of introduction of compulsory gradenine in basic schools, prolonging of the period of career preparation, postponement of retirement age,labour migration), where the labour market will be able to absorb only about half of this increase.

The share of foreign workers is rapidly increasing in the labour force, and mostly consists of manualworkers. These persons are employed for unqualified work, especially in construction and industry.During 1996 the number of foreigners working as workers equalled the number of local unemployedpersons with basic school education. Thus, the competition is increasing for the domestic unqualifiedlabour force and especially for young people without education.

Amounts and Types of Employment Opportunities

In parallel with the economic recovery, the overall demand for the labour force has increased since 1994(in 1996, the increase in employment reached a value of 1.2%), thus creating favourable conditions foremployment of school graduates. The structure of employment opportunities has shifted towards theservices sector (see Table 18), where the greatest increase has occurred in the highly qualified jobs in thesector of financial services and public administration. Working opportunities have rapidly appeared overthe entire structure of the branch, in marketing, information services, and legal and financial fields, whereparticularly university graduates have found jobs. The demand for higher education qualifications isgreater than the supply. The formation of a large number of small companies and businesses has led to amarked shift in demands for artisans and has increased the job supply for those with vocationalqualifications. Similarly, developments in some service branches have increased the demand for workerswith vocational qualification. In both educational categories (higher and vocational education graduates),the range of jobs offered through the Labour Office is almost equal to the number of unemployed (theactual number of vacancies is much higher, especially for higher education graduates) (see Table 27 in theAnnex).

The processes of transformation and privatisation have led to rapid developments in small and medium-sized enterprises in CR, including small private businesses. While the small private sector practically didnot exist in 1990, the share of small enterprises (up to 25 employees) in overall employment equalledabout 20% in 1996, and this figure increased to 37% when medium companies were included (up to 100employees). According to the survey of the age distribution of employees based on the size of companies,employment of younger than 30 year old people in organisations with up to 100 employees is usually 2-3% higher than in larger organisations and is 1-2 % lower for persons over 50 years. The share of youngpeople employed in these small companies is not, however, predominant (the middle generationconstitutes the greatest share) and preference for this group of employees is not evident (see Table 20 ofthe Annex).

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School graduates generally do not suffer from discrimination in the labour market compared to olderemployees. New trades and professions rapidly expanded or appeared during the economic transformationperiod in connection with the functioning of a market economy, where even the other age groups did nothave sufficient experience. In contrast, the skill structure of school graduates was better suited to therequirements of the labour market. Employers especially valued the ability of young people to adapt andlearn new skills.

Sectoral shifts in employment have slowed down since 1995 and the sectoral structure is more stable atthe present time. Internal differentiation within the sectors can be expected to increase in the future. Newjob opportunities will appear especially in the branches of trade, restaurants and accommodation, personaland household services and in the field of information technology, while job opportunities will remainconstant or decrease in some service branches with previously marked increase in the labour force (suchas financial services and public administration).

Production restructuring, introduction of new technology and management methods connected with theinvestment wave will lead to a certain decrease in employment as well as a change in work structure andcharacter. Routine and repeated work will be replaced by mechanisation and automation. On the otherhand, the number of employees required in the field of technical operational management, research andfinancial commercial operations will increase. Automation of administrative work will lead to a change inthe career structure from ordinary officials to analysts and experts in the operation of information systems.In the future there will be a rapid decrease in job opportunities requiring only low qualifications, with amarked increase in demand for experts and specialists with the highest qualifications in financial andeconomic and especially technical fields.

Unemployment Amongst School Graduates

Unemployment amongst new school graduates is somewhat higher than amongst the general population;however, differences are not great. Only school graduates without qualifications have a significantlyworse position in the labour market and are not in demand amongst employers (for more details, seesubchapter III.3). Secondary general school ("gymnasium") students encounter difficulties connected withdirect transition to working life, but are evaluated as being flexible and willing to be retrained. Greaterdifficulties in obtaining jobs are encountered amongst school graduates with disabilities or mothers ofsmall children. Unemployment amongst disabled is about 17% (for all age group of disabled population)and is increasing, and the unemployment rate of mothers is about 5%. People with disabilities areincreasingly less successful in finding employment even though the creation and maintenance of suitablejobs is subsidised by the Labour Office.

The branch composition of school graduates is sometimes discordant with demand on the job market. Thejob market can more readily absorb the graduates from technical branches in spite of their large number,compared to the graduates of agricultural, forestry, veterinary and medical branches at all levels ofeducation. The number of unemployed graduates of secondary technical schools has begun to increaserecently, especially those educated in the rapidly developing and now over-developed fields of economics,trade and services.

Trends in unemployment amongst school graduates is reflected in changing ratio unemployment ofgraduates to the overall number of graduates at the given level and branch of study14 (see Table 22 in theAnnex).

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Where the graduates of secondary vocational schools are involved, this ratio varied in the 1993-1996period in the 4.0 - 4.6% range and no clear trends are apparent. The given percentage corresponds toconditions towards the end of April each year, i.e. about 10 months after school graduation. However, theimpact of the economic reform is apparent in the vocational structure of unemployment amongst youngpeople, because the proportion of unemployed differs according to the individual vocational branches andprofessions. For example, the share of graduates in agricultural branches (8.0%) is disproportionatelylarge, as there has been a marked decrease in agricultural employees. Unemployment amongst graduatesin technical branches (e.g. machinery, electro-technology, construction, chemistry) corresponds to the andreaches the 3.9 - 4.6% in range. Unemployment amongst the graduates in economic branches (trade,hotels, etc.) is increasing, but is still not high. This proportion increased from 0.6% to 4.6% over the 1993- 1996 period. Reasons are in changes in employment structure. At the beginning of the 90s, demandincreased for graduates in these branches, graduates readily found jobs in the labour market andunemployment levels were marginal.

Amongst the graduates of secondary technical schools the relationship between unemployment and theoverall number of graduates in the 1993 - 1996 period has developed promisingly, with a decrease from7.2% to 2.9%. The trends in unemployment amongst this group of young people are also favourable fromthe standpoint of vocational structure. The proportion of unemployed decreased amongst graduates inagricultural branches from 7.7% to 4.2%, in technical branches from 7.5% to 3.7%, and in technicalbranches from 6.1% to 2.7%. The portion of unemployed graduates of "gymnasiums" decreased slightlyfrom 3.4% to 2.8%.

Amongst the graduates of higher education, unemployment trends are favourable. Over the whole groupof university graduates, unemployment decreased over the 1993 - 1996 period from 9.3% to 1.5%. Thisindicates that the economic reform has increased the demand for a qualified labour force in generalbecause the unemployment trends amongst higher education graduates are similar in all respects,including the main groups of vocations. There has been a decrease in unemployment levels amongstgraduates in agricultural branches from 15.7% to 3.0%, amongst the graduates in technical branches from10.3% to 1.4% and amongst the graduates in economic branches from 5.6% to 1.2%.

The advantageous position of university graduates in the labour market is also reflected in studies carriedout by universities, indicating that up to 85% of graduates (depending on the type of school and branch ofstudy) do not encounter difficulties in obtaining employment. In some branches (especially technical)companies offer graduates jobs towards the end of their studies (see ref. /11/)15.

Regional differences in the occurrence of unemployment amongst school graduates are similar to theaverage for the economically active population, i.e. they are higher in Northern Bohemia and NorthernMoravia. Unemployment rates are higher amongst graduates with higher qualifications, i.e. secondary anduniversity education, even in Southern Moravia, which is a traditionally agricultural area (see Annex No.5 and Table 23 in the Annex). More flexible balancing of supply and demand in the individual regions ishindered, amongst other things, by the low mobility of the labour force. Moving to find work was not apredominant feature even in the past and at the present time this reluctance is partly the consequence ofthe long-term housing shortage, especially in large cities and in regions with rapidly expandingemployment opportunities. The generally greater willingness of young people to change their place ofresidence and adjust to new spatial distribution of employment opportunities can thus not be utilised.

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Wage and Other Conditions for Employing School Graduates

The wages of school graduates are established on the basis of an agreement with the employer. In thebudgetary sphere, wage and salary tables form a basis for determining wages from the level ofqualification and the number of years of relevant experience. In both cases they correspond to the lowerminimum wage level (at the present time, these wages correspond to about one quarter of the averagewage which was 9 676 CZK in 1996).

The average monthly wages of employees younger than 19 years old with secondary education (general,technical and vocational) - i.e. just few years after entering employment - attain a level of about 63 to 72%of the average wage for employees with the same level of education. Over the next few years, however,these differences will become more or less equalised, so that the average wages of young employees withsecondary education at the age of 20-29 years will be only 6 to 14% lower than the average wages for allemployees. Similar differences exist in the average wages of higher education graduates in the first fewyears after entering into employment and other employees. The wages of young people aged 20 - 29 yearsare about one quarter lower than the average wages of all people with the same education. Conditionsamongst unqualified young employees (with only basic education) seem to be quite specific; the averagewages of these employees aged up to nineteen years are only about 15% lower than the wages of otheremployees with the same level of education and in the 20-29 year age group they are even slightly higherthan the wages of other age groups. (More detailed information is given in Table 21 of the Annex).

The average wages of young school graduates in the first years after beginning employment, aresomewhat lower compared with the wages of experienced employees with the same level of education.However, these differences can be expected to even out over the next few years. It can be stated that initialwages do not constitute a significant barrier for employment of school graduates.

In some less common cases, an impediment for employment of school graduates could be their legalprotection in the labour market. This is based on a provision in the Labour Code stating that an employermust not sign an employment contract with a school graduate for a determinate period of time and thenlater decide on permanent employment. Other potential barriers are relevant for young people (to 18 yearsold) who may not work in all professions (difficult or harmful work) and persons with health problems,who may lose their jobs only with the consent of the Labour Office.

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CHAPTER V: CHANGES OF EXPECTATIONS AND OBJECTIVES

The attitudes and expectations of participants in the process of transition of young people from school toworking life correspond to the relatively low unemployment level in the average population and amongstmost groups of school graduates.

The Ministry of Labour expects that interest will remain high in the future in the labour market especiallyfor qualified employees and that the expected slight increase in unemployment will occur primarilyamongst persons with lower qualifications. This further decreases the potential for employment of youngpeople without adequate qualifications ( difficulties connected with employment of these young peoplewill increase). Restructuring of the economy will begin to lead to structural unemployment in some areas.The relatively large regional differences in the labour market will be retained or increased. In thisconnection, the individual Labour Offices, especially in endangered areas, expect difficulties in findingemployment for school graduates. Labour Offices estimate that an excess of graduates could appear forsome types of new schools (home-economics schools, higher professional schools) and amongst somebranches of education (management, environmental studies, follow-up Maturita courses in privatebusiness, etc.). A certain degree of saturation of the labour market can be observed at the present timeamongst the graduates of some secondary schools (e.g. commercial academies) and in the humanities.Labour Offices do not expect rural areas to become potential critical regions, but rather industrialagglomerations, where mining of raw materials, metallurgy and the heavy machine industry predominate,are considered to be in danger.

After 1989 the Ministry of Education attempted to create an adequate legislative framework forliberalisation of the education system, for independence of schools and for their flexible reaction to thedemands of students. However, this highly spontaneous development led to a number of ineffectiveconsequences. In relation to the labour market, schools are frequently oriented towards momentaryattractive offers from the standpoint of applicant interest, and are not concerned with their applicabilityfrom the long-term point of view. Some difficulties persist in vocational structure, in the proportionsbetween general and vocationally oriented education and also in the suitability of the study content. Anexcessive number of small schools and the current unsatisfied demands for study at the tertiaryeducational level are becoming systematic problems.

The Ministry of Education is gradually adopting measures to effectively change this situation, throughevaluation and information mechanisms, through financial mechanisms or (which is, of course, notpossible at the university level) through direct administrative intervention (example, exclusion of poor-quality schools from the school network or failure to register schools or branches with unsuitable studyprogrammes). These plans and steps are putting increasing emphasis on greater consideration forconnections to the concrete requirements of a given area and the suitability of the structure of the levelsand branches of education as a whole in relation to the requirements of the labour market. In contrast tothe attitudes of employers and the labour sector towards the training of young people, the approach of theMinistry of Education is influenced more by social pressures and the need to increase humanisation anddemocratisation of the education system rather than by inter-relations with the labour market.

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Employers' federations consider problems in the labour market faced by enterprises over the last few yearsto be among the most pressing. According to a survey16 held by the Federation of Industry, enterprisesencounter the greatest difficulties in connection with obtaining employees in the category of highereducation graduates and qualified experienced manual workers. The next category in terms of demandconsists of secondary school graduates and graduates of secondary vocational schools. Employersconsider that the decrease in interest amongst students in technical vocational branches at all types ofschools is a very unfavourable trend. They recommend that to held information campaigns at schools, tosupport sponsorship, along with suitable stipends for students and apprentices bound to employment in thebranch. They recommend that the state makes preferable study at schools with technical studyprogrammes accompanied by an increase in the prestige of technical branches.

In the last few years, enterprises have lost interest in participating in the preparation of apprentices, fortwo reasons: they can obtain trained employees free in the labour market, whose education was financedby the state, and also because the Labour Code states that a graduate of a secondary vocational school,whose education was paid by a company, may leave to work for a different employer. The business sphereevaluates developments in vocational training as very adverse. They see the causes in the lack of suitablelegislation that would permit binding of students to remaining in the company, would create conditions forstipends and sponsoring and would provide support for operation of vocational training centres bycompanies (e.g. through tax advantages). At the present time, a proposal is being prepared to introducestimuli that would make the companies financially more interested in co-operation in apprentice training.

Enterprises and employer federations suffer from a lack of legislative support that would allow them toaffect the structure of branches of study and their contents. On the other hand, the attitude of employerfederations towards the education system and its production can be characterised as passive, where theinitiative is left to the individual companies. The degree of interest in school graduates and their trainingvaries greatly in the individual regions, even in relation to conditions in the individual branches andprofessions. They consider that responsibility lies with the Ministry of Education, which should influencethe distribution of educational capacity with a target oriented approach in the framework of the countryand its regions and in relation to the current and future requirements of the economy.

Trade unions are not specifically concerned with the subject of school graduates. Their work isconcentrated on negotiations connected with wage and social conditions. At the tripartite level(negotiations of trade union federations with the government), they are concerned rather with the maintransformation steps of the government in the social system and in the education system as a whole. Thestandpoint of the trade unions is based on the opinion that the education system is responsible forpreparation of young people for the labour market, where education is a right whose provision is theresponsibility of the state. Thus they emphasise the development of a high-quality state education systemand its availability. They are against privatisation in education in all its forms, because they feel that thisleads to social discrimination in the approach to education and to ineffective use of public funding withoutsufficient controls.

The attitudes and expectations of young people in connection with finding suitable employment are basedon the fact that a predominant portion of the young population has so far not encountered seriousdifficulties in the labour market. Almost one quarter of young people up to 29 years of age has experiencewith unemployment and with means of dealing with this problem (this figure decreases to 13% as theaverage for economically active population). In spite of certain personal experience connected withunemployment, the young generation remains optimistic in relation to the future for their professions andthe connected possibility of job loss. 80% of young people consider their profession to have a future.Opinions on the potential danger of loss of employment are similar. Roughly three quarters of youngpeople are convinced that such loss is highly improbable. Sociological surveys have indicated that young

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people do not consider stable employment to be amongst their foremost targets. Young people mostly donot look for life-long jobs but tend rather to be interested in gaining experience in employment with agreater number of employers (possibly in several professions). In choice of a career, young people givepreference to a better-paid job outside of a company rather than to a promising position within a company.A great portion of the young generation does not consider that the need to change profession involves agreat risk. In general, the opinion predominates that those who want to work can find jobs. Conditions are,however, different in rural districts from those in Prague and other large cities.

Most young people have a positive attitude towards dealing with potential unemployment. When faced bythe choice of changing profession, re-training, change of residence and collecting unemploymentinsurance, young people tend to prefer re-training and opening a private business to a far greater degreethan the remainder of the population. Differences can be seen amongst the various levels of education.University graduates tend to prefer their profession over their place of residence, while those with a lowerlevel of education tend to prefer their place of residence over their profession. The option of re-training ischosen most often by secondary school graduates; while those with a lower level of education tend toprefer occasional work.

According to sociological surveys that interest in attaining and utilising a higher level of education isincreasing17. The opinion predominates that an education gives better chances for greater choice whenlooking for a job, better financial conditions for work and better opportunities for promotion on the job.Greater interest in obtaining university or higher professional school study is currently in contradictionwith the opportunities offered by the education system.

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CHAPTER VI: POLICY FOR THE TRANSITION PROCESS

1. Education Policy

The development of the education system over the last few years has been characterised by a transitionaway from state centralism (lasted throughout the period from 1948 - 1989), which was manifested in adirective and frequently ideological management of all aspects of school life, including the content andorganisation of study. The number of graduates at various levels and types of schools and vocations wasplanned in detail. This process was implemented in accord with the requirements of the individualeconomic sectors, whose productivity was, however, very low compared with that in developed countries.Following the political changes in 1989, there was a substantial and rapid shift of a considerable part ofdecision-making to a lower administrative level (schools and school offices) and the state monopoly onprovision of education was abolished (this is not yet true for universities).

In the initial transformation period (roughly up to 1993), the chief actors in changes in the educationsystem and its reaction to the labour market were the schools and other educational institutions. Legalmeasures and political documents that appeared at that time provided the amplitude and framework forthese changes. (Due to lack of space, Annex No. 4 generally gives only those legal measures that aredirectly connected with the relationship between education and the labour market - however, similarlegislation introduced conditions for creation of the contents and organisation of study, evaluation ofschools, etc., as follows from the text of the Chapter).

Over the last three years, a more systematic approach on the part of the state (i.e. Ministry of Education)has become visible. This change was reflected in the documentQuality and Accountability,whichappeared in 1994 (see Annex No. 4). In connection with implementation of the mechanisms of the activeeducation policy mentioned here, the following can be mentioned:

In the sphere of curriculum policy, basic educational standards have been prepared for individual typesand levels of schools up to the secondary school level. The standard for the vocational education iscreated in accord with conditions in the countries of the European Union. Restrictions have been removedfrom teaching plans - schools can change part of these plans (up to 10%) and the proportion of electedsubjects has increased. At the present time, the Ministry of Education is considering establishing aCurriculum Council as a ministerial counselling body, which would also include representatives of allimportant partners of schools, including the employers of their graduates.

The quality of the education process and its results are evaluated through a system of regular and specialinspections or, for higher education, through a system of accreditation, and other evaluation and self-evaluation processes. Only in some cases do these evaluations include information on the lateremployment of graduates and the opinions of their employers (e.g. the evaluation project for higherprofessional schools organised by the Association of Higher Professional Schools - EVOS). The relevanceto the requirements of the labour market and further education should be reflected in attempts to create asystem of comparability of some parts of Maturita examinations at secondary schools, which have become

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very varied under the impact of removal of constraints on school activities - however, this tends to lie inthe future.

Financial mechanisms are being gradually adapted to the required rationalisation of the functioning of theschool system which has undergone extensive development in the last few years. The necessity for thisrationalisation is further emphasised by the rapidly decreasing number of students in each grade at allschool levels.

Although the amount of standard finances for the individual branches of study is not adapted to the levelof their requirements or attractiveness, but rather corresponds to essential expenditures, a certain selectionbased on the requirements of the given branch or school study area is beginning to appear in approvalprocesses and subsequent financing as well as during considerations of the necessity of optimising theschool network (see reference /12/).

In approving study branches and including schools in the network, one of the standpoints now includesmonitoring of the potential for employment of graduates, and professionals in the branch were included inthe commissions for incorporation of higher professional schools into the network.

Over the last three years, the amount of information on schools and the education system has increasedsubstantially chiefly thanks to the Institute for Information on Education. Published information can beutilised both by the Ministry of Education and the schools themselves, applicants for study and studentsfor further orientation, as well as graduates and employers. In addition to an improvement in generalstatistics, the programme Segmented Evaluation and Typology (SET) (see ref. /13/), concerned withsecondary education, was also of importance in this respect. As a result of this programme, there was asubstantial increase in the amount of information on school results, conditions and preconditions for theteaching provided, the level of this teaching, etc. The subjects monitored also included the relationships ofschools to other partners - which also included employers. In addition, the prestige of the school in theeyes of experts and the general public was evaluated, along with the interest in the school on theeducational market, whether languages are also taught, whether computers are used, etc.

Information growth is also understandably increased by the publication of annual reports of the schools,which should also include mention of the relationship to employers - however, because this is an entirelynew approach, its effect is not yet entirely clear and the goal has probably not yet been achieved.

Expanding studies of the employment opportunities for school graduates contribute to the development ofthe information environment. The Research Institute of Technical and Vocational education has carriedout comparisons of the market in education and the labour market at the secondary school level since1995. In the framework of the Fund for Development of Universities, which is jointly organised by theUniversity Council and the Ministry of Education, a study was begun in 1996 of employmentopportunities for the graduates of the individual schools and faculties, which gradually led to a projectincluding the entire university system and using a uniform method. The grant programme of the Ministryof Education supports projects dealing with the reaction of schools and especially teacher education to therequirements of the region.

The idea of connections with the labour market is only gradually being implemented for the developmentof pedagogical-psychological guidance. Further education of teachers and managers in education is beingimplemented mostly at random in this system.

The education sector is only just becoming used to the requirements of systematic interconnection withthe labour market and individual measures tend rather to follow from activities of departments at the

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central level or at the individual schools or associations of schools or professional associations of teachers,than to be the result of overall state policy - although this subject is not entirely neglected at the statelevel. The reasons for present conditions lie rather in the currently low unemployment and relative lack ofdifficulties encountered by graduates in seeking employment.

2. The Policy of the Sector of Labour

The approach of the Ministry of Labour is different and its wide range of activities directed towardspreparing the population for the new conditions on the labour market.

Similarly as in neighbouring countries, the transition to a market economy in the Czech Republic led to arapid increase in unemployment in the first two years. The unemployment level increased from 0.66% inDecember of 1990 to 4.13% in December of 1991. This situation led to the passing of basic legalregulations in the sphere of employment in 1991, thus creating conditions for an active approach todealing with unemployment with maximum utilisation of the possibilities for the creation of new jobsbased on the requirements of the labour market. The relatively favourable conditions on the labour marketin subsequent years and the growing number of vacant jobs led to changes in the approach andimplementation of individual instruments of an active employment policy. Greater emphasis began to beplaced primarily on a differentiated approach directed towards placing of persons who were harder toincorporate into the working process (this also included school graduates) and especially on support forregions with high unemployment .

A range of instruments of active employment policy were created, which included support for the creationof jobs, support for the employment of certain groups of the population with disadvantages in the jobmarket, support for retraining and also temporary support for shorter working times in companies withdifficulties of the restructuring kind (for details see Annex No. 1 - Part 3). An active employment policy isimplemented by the Labour Offices which, in finances allocation, base their decisions on analyses of thelabour market in the region (the use of the instruments of an active employment policy in the years 1991 -1996 is documented in Table 28 in the Annex).

The employment policy for youth under 18 years old and school graduates is based on the principles oftargeting of expenditures towards the most affected groups of young people and regions with higherunemployment. Support for unemployed youth and school graduates can be provided in the framework ofthe whole scale of employment policy tools, however the programme for gaining vocational experienceand qualification is targeted at this particular group. Employers who create opportunities for professionalexperience for graduates of schools or for youth under 18 years old who are registered with the LabourOffice can be reimbursed by LO, usually fully or partially for a period of one year (or longer) for wageexpenditures connected with employing the graduate. It is assumed that the job will be maintained for aperiod of two years. The share of funds expended for employing school graduates corresponds to 20% ofthe overall expenditures for active employment policy. In 1993 - 1995, a total of 21 thousand jobs werecreated for graduates and young people.

Another instrument of active employment policy that is used to assist school graduates for employment orreturn to the education system) is retraining. Retraining is frequently connected with other activeemployment instruments, especially when the graduate is physically or otherwise disabled. Participants inretraining courses are reimbursed for the cost of the course. In general, two kinds of retraining areorganised: specific - for a concrete profession with the promise of employment with the employer, or non-specific - where the participant does not have a promise of a specific job and is trained to obtain skills thatwill improve his (her) chance of getting a job in the labour market. In 1996, graduates constituted almost

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34% of all participants in retraining courses. Especially young people with only basic school educationconstituted a significant share (12%), along with graduates of secondary technical schools (9%).

Although statistical surveys of the implementation of further instruments of active employment policy donot follow participation of young people, a certain information can be obtained from projects of LabourOffices, submitted to the Employment Services Department, and also from analyses of Labour Offices,where these activities are evaluated. According to the analysis, in addition to issues connected with long-term unemployment, the greatest attention is paid to dealing with unemployment amongst young people.Young people (to the age of 18 years) without any qualifications are most in danger of long-termunemployment.

In practice common instruments of active employment policy are often not effective for youth under 18years old and it is often not possible to find permanent jobs for them. For this reason, special conditionshave been established for retraining or practical retraining of these young people. As they usually involveyoung people who were not successful in the education system, these courses are concerned withobtaining basic qualifications, manual skills in working with materials, practical skills and working habits.

In connection with the need for more extensive assistance for this group of unemployed persons, aninnovation programme approach has also been conceived and supported financially by the KNOW-HOWfund. This programme includes a complex of all the basic steps of assistance to young people and includesboth retraining and choice of employment as well as certain preventative measures (see below).

Romany population constitutes a specific group in the labour market in the Czech Republic and this alsoincludes school graduates. Because of social and cultural differences, a satisfactory solution to thisproblem has not always been found even by educational institutes. In Northern Moravia (the VsetínDistrict), the Romstar project was implemented for unemployed, unqualified young Romanies. Successwas encountered in attracting these young people to the project, but their success rate in finding jobs aftercompletion of the project was not demonstrably better. The Ministry of Labour has created the position ofAdvisor for Employment of Members of the Romany Group, which is occupied by an ethnic Romany, toco-ordinate procedures in this area.

No comparable evaluation is of the success of the implemented programmes of active employment policyamongst school graduates and requalification is available. It can be concluded from analyses carried outby the Labour Office that, in spite of attempts to effectively expend finances, there is a lack of interest inparticipating in courses and in implementing these activities. The behaviour of employers is also acontributing factor, as they offer such low wages that potential applicants are not sufficiently motivated toaccept the jobs offered (employers have a tendency to consider retrained persons to be "graduates"without experience or a person with lower qualifications). Employers sometimes try to obtain subsidiesfor creating jobs or to support a position in which a graduate can gain experience, where this is often not anew position. For example, in health care, some hospitals practically demand assistance from the LabourOffice for employing a group doctor without the first attestation examination.

3. Relations Between Sectors of Relevant Ministries

Since 1989, the relations between sectors of relevant ministries have changed in their responsibility for theeducation system and vocational preparation or qualification. These changes are linked to changes in theposition of vocational education since 1989, when companies, in connection with reorganisation(abolishing of general directorships, whose powers included vocational training centres and through whichthey were financed by the appropriate sectoral ministries), privatisation, restructuring of the economy and

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the introduction of stricter competitive conditions, lost interest in financing this education system andsometimes in the financial opportunities for supporting such a system.

In 1992, responsibility for apprentice training was taken over by the Ministry of the Economy. Criticismwas particularly directed towards the fact that, instead of integration of a system of vocational preparation,an important component was organisationally separated - technical education under the jurisdictionprimarily of the Ministry of Education and apprentice schools under the jurisdiction of the Ministry ofEconomy - leading to a lack of co-ordination and uniform policy of VET, also indicating a lack ofmanagement in the utilisation of capacities. This condition was remedied by returning vocationaleducation under the Ministry of Education in 1996, where especially health-care education was transferredto the Ministry of Education (formerly under the jurisdiction of the Ministry of Health). Secondaryagricultural apprentice schools remain outside of the jurisdiction of the Ministry of Education - althoughthe Ministry of Education also has significant jurisdiction connected especially with the general parts ofthis study. Police and military schools also lie outside of the jurisdiction of this Ministry.

The separation of vocational education under Ministry of Education from the system of the supplementqualification and re-qualification courses, organised by the LO under the jurisdiction of the Ministry ofEducation. Most of these courses take place at school facilities using their teaching personnel. This factcertainly contributes to bringing the school closer to employment requirements in the initial phases ofeducation.

A further step in the development of relations between the two sectors was the signing of the agreementon co-operation and exchange of information connected with placing graduates on the labour marketbetween the Ministry of Education and the Ministry of Labour. This include such associated issues asconsulting on measures connected with the information and guidance systems for choice of a career,initiation of co-operation between institutes at the level of territorial units, i.e. Labour Offices, SchoolOffices and Pedagogical-Psychological Guidance Offices, schools and school facilities, etc.).

Certain assistance in co-ordination of education, vocational preparation and placing of school graduates injobs at the regional level could be provided by the newly created Ministry for Regional Development,which is one of the successor organisations of the Ministry of Economy, which was abolished in themiddle of 1996.

4. The Impact of Agents at the Territorial Level

Co-operation between the individual stakeholders of the education system at the territorial level isprogressing from the current territorial division of the country into districts (on an average withjurisdiction over about 120 thousand inhabitants). The former higher territorial administrative units wereabolished in 1990 as a consequence of doubts as to the correctness of their boundaries in the light of thenatural functioning of regions. New regions have not yet been established (they are to be formed on thebasis of the constitution). School Offices and Labour Offices function at the District level.

The role of School Offices, which were established in 1990 by the Ministry of Education (up to that timeschool divisions were active as a component of territorial administration under the jurisdiction of theMinistry of the Interior), is not very great at the present time in dealing with the subject of transition fromschools to working life. Although their jurisdiction includes, in addition to administration and financing ofbasic and secondary schools, also methodical jurisdiction, this is frequently not implemented. It tends tobe left to the individual School Offices to decide to what degree they decide to attempt to understandemployment conditions in their district or region and, in return, affect the education system primarily

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through the impact of information, and also through direct intervention. However, favourable examples ofsuch activities can be found. School Offices attribute great importance, in affecting the requirements forthe school network in a given territory, to the prepared programme of optimisation of the school network(see ref. /12/).

Co-operation between schools and employers is not systematically encouraged in the Czech Republic. Theabove-mentioned developments in vocational education were important here; at the beginning of theeconomic reform, most vocational schools were excluded from the jurisdiction of enterprises. At that timea new category was created, called state apprentices, i.e. those who are not preparing for a specificemployment that would participate financially in paying the costs of their education. At the present time,the proportion of state apprentices varies around 85%.

Now, when most enterprises have become economically consolidated and when it would be useful torenew co-operation between vocational schools and vocational education as a unit with enterprises, nomeasures have so far been accepted in this respect. This is partially the result of the approach that thegraduates of vocational education should not be prepared for a certain company, as their flexibility andfree choice of jobs would thus be limited. In addition, the constitution guarantees free education up to thesecondary school level. Simultaneously, the willingness of enterprises to take over vocational educationfacilities or to organise the vocational preparation of students and apprentices at their own expense differsfrom case to case. Some enterprises are aware that such an approach would be advantageous for their owncompetitiveness and several successful vocational schools are supported by employers. Other companiesare too small to be able to finance apprentice training facilities or student practice, or are not aware of anybenefits that would ensue.

As there is a lack of mechanisms for support for further education for employers (tax allowances, whichhave not yet been introduced in order to retain the explicitness of the tax system, the ability of companiesto contribute to joint funds, etc.), this area has been neglected from the standpoint of a systematicapproach. However, enterprises often finance or even independently organise courses of further educationfor their employees.

So far, employers associations, professional associations and other social partners are only marginallyinterested in aspects of transition from schools to working life. Even the Federation of Industry andTransportation, Federation of Businessmen in the Construction Industry and representatives of the tradeunions or chambers of the economy and commerce have not initiated systematic assistance for co-operation between schools and companies at the central level. There tend rather to be cases of spontaneousco-operation at the local or individual level - representatives of the most important employers' association- the Confederation of Industry and Transportation are, for example, members of the Scientific Committeeof the Czech Institute of Technology and of the assessment committee of the Association of Schools ofHigher Education, a representative of the Chamber of the Economy is a member of the AdministrativeBoard of the National Training Fund, etc. Individual professional chambers (medical doctors, lawyers,etc.) supervise the level of study in their own fields. There is good communication in apprentice schools,e.g., in the fields of polygraphics or plumbing, where the professional associations of employers maintainregular contacts with the schools in their branch, participate in the creation of teaching programmes,provide support for creation of textbooks and participate in final examinations.

Beneficial communication amongst employers, at the level of individual companies or associations ofemployers or professional associations and the education system often occurs belatedly when there is alack of graduates from a certain vocational branches (at the present time, e.g., in machine working orconstruction).

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Conditions are quite favourable in higher professional schooling, where one of the principles of theestablishing of this field in 1990 was close communication with employers and an investigation ofqualification requirements in the framework of the region. These characteristics can be convincinglydescribed only for almost thirty schools, which were part of the experimental phase of the project (up to1995, when a wide range of possibilities for establishing further higher professional schools opened up).Nonetheless, it can also be expected in the future that higher professionals, which will attempt to attractapplicants through their quality and the certainty of employment for graduates, will have to concentrateintensely on communication with potential employers.

The position of the trade unions is specific in issues connected with qualification and employment ofschool graduates; at the present time, trade unions are more evidently concerned with the issues of socialsecurity of employees and their wages than aspects of their professional development. However, even heretheir role should evolve under the pressure of realist requirements.

The schools themselves assist in the transition of their graduates to working life by allowing employers toinform pupils or students of employment positions that they intend to provide for graduates. This isusually carried out through written offers from potential employers which are displayed in the school.Sometimes, employees of the enterprise (usually personnel workers) visit the school in person, usually inthe final, pre-graduation years. A system of employment offers for university graduates through theInternet is developing. A majority of students in the final years of secondary schools, who do not go on tothe tertiary level of education, and university graduates look for jobs themselves, based on personalcontacts or employment advertisements in the mass media, or through their employed parents. Theseapproaches have so far been successful, as the percentage of unemployed graduates is relatively low.

Labour Offices also assist students in the final years in the transition from school to working life. Theseoffices are operated under the jurisdiction of the Ministry of Labour and are concerned with activeemployment policy. A network of these offices was completed in 1990; previously labour force divisionshad been part of the territorial administration bodies and were concerned mainly with offers ofemployment.

The Labour Offices also include information and consulting centres. The building of these centres (whichhave been included in all Labour Offices since 1996) led to transfer of part of the responsibility in thesphere of guidance in choice of a career and monitoring (evaluating) offers in the media to these bodies.

In many districts, the information and consulting centres at the Labour Offices have become an integralpart of the services that the state provides on the Labour Market. Their primary task is to assist youngpeople (graduates) in the choice of a career and of a suitable educational institution for preparation forsuch a career, based on the abilities and interests of the young person and knowledge of the labour market.These services, which are free, are provided to all persons interested in supplementing, extending orchanging their profession. The employees of these centres are in constant contact with thecommunications media in the region, monitor study fields offered at the individual schools and arrange formeetings with pupils and students in the final years on the subject and potential for their further educationor of finding a position in the labour market. Special attention is paid especially to the final years in basicschools.

Communication often occurs indirectly through the Labour Offices, between employers and schools at theregional level. The consulting committee (consulting body) of the Director of the Labour Office usuallyincludes both representatives of employers (and/or trade unions) as well as educational facilities in thedistrict (and/or the Schools Office). The regional requirements of a great many parties are collected at thelevel of this body and information is exchanged on the labour market. Representatives of the Labour

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Office are also active in a number of schools, where they contribute favourably to influencing the studycontent so that it corresponds to the requirements of the labour market and graduates do not have toundergo retraining.

5. Policy in the Sphere of the Mobility of Students across the Education system and Certificationpolicy

The fact that new types of institutions and study programmes emerged after 1989 and the opportunities forindividual educational pathways were extended greatly enriched the range of study opportunities and ledto a greater ability amongst students to pass through the education system.

The above-described increase in the participation of the younger population in study branches withMaturita led to an extension of the base for continued study at the tertiary level (one of the consequencesof the thus-supported increase in interest was that the extent of meeting the demand for tertiary educationremains at a low level, although the number of study opportunities is increasing). Opportunities have alsobeen created for study for persons who were formerly difficult to incorporate into the educational processafter completion of basic school (for example home economics schools). The system of multi-yeargymnasiums, in spite of some criticism of their selectivity at an early age, provides the opportunity ofrepeated attempts to be accepted by a gymnasium and thus to increase the probability of obtaining aposition on the post-secondary educational market, especially in the social branches and the humanities.The share of graduates of other types of secondary schools (secondary technical schools and vocationalbranches with a Maturita at secondary vocational schools, as well as all the institutions of a "transitorytype" - integrated schools and lyceums) is also increasing amongst those accepted for post-secondarystudy, although at a slower rate because of lower interest of their graduates in continuing study.Opportunities for graduates of these institutions are increased especially through higher professionalschools.

The system of multi-level study at technical schools, implemented by the Ministry of Education throughcurriculum policy, is being gradually completed with the goal of not only improving the potential fortransfers in study amongst the individual types of schools, but also to achieve a situation where a studentis able to complete his (her) studies with a valid certificate, on the basis of his (her) individual situation,and later return to school again. One of the frequently utilised opportunities consists of a programmewhere the graduates of vocational schools can obtain a Maturita at a secondary school through follow-upcourses.

Study has become most extensively individualised at universities. However, faculties and students willundoubtedly develop further and utilise the possibility of combining study at the bachelor's andmagisterial level and individual study pathways in the framework of the entire cycles, so that it will bepossible to react more flexibly to changes in the interests of students and changes in the labour market.The future will undoubtedly open opportunities for recognition of part of higher technical studies byuniversities, with increased interest in taking advantage of these opportunities. The current legislationleaves this issue to the individual institutions and their mutual communications.

Conditions are, understandably, far from ideal. A certain continuing inflexibility in the education systemis respect to interconnection of study programmes could be partly a consequence of insufficient interest,i.e. the fact that students themselves are often not aware of the opportunities and their advantages.

Interested persons with various levels of previous education participate in further education, retraining andsupplementing qualifications. At the present time, there is no uniform system of certificates of further

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education and, as mentioned above, it is up to the employer or the business chamber to decide to recognisea certificate. Because of their shorter duration and attractiveness, these courses can compete with initialeducation provided especially by vocational schools.

Because of somewhat chaotic conditions in deciding how to obtain the required skills for a certainoccupation, established levels of education are mostly not included in the list of careers drawn up by theMinistry of Labour. Wage regulations also reflect the achieved level of education only for the state sector.Nonetheless, persons with higher education obtain better evaluations and achieve higher positions andprofessional promotion often depends on supplementary education. A contributing factor in this respect isthe fact that persons with higher education and interest in further education are often more efficient andambitious and their knowledge and abilities are more useful. In addition, the changes occurring in theeconomy demand new and better qualifications. On the other hand, it will take some time before acompletely new level of qualification evolves - such as, e.g., the bachelor's diploma or certificate ofabsolving a higher professional school, both amongst employers and from the standpoint of regulationsestablished by the state.

It is apparent that the best way to curtail unemployment amongst young people is to decrease the numberwho do not obtain any qualifications at all. Those that do not continue their education after completingcompulsory school attendance in the Czech Republic correspond to about 2% of the overall number ofschool attendees. However, this share could be increased to include pupils who leave the education systemwith incomplete education (about another 2%).

A pupil who was unsuccessful in a given year even after repeating his (her) examinations is allowed torepeat the year and then continue studies. In cases of marked lack of success, where it is apparent that thestudent is incapable of meeting the requirements of the field of study, the student is usually allowed totransfer to a field of study that would be better suited to his (her) abilities. This can be a different field atthe same level of preparation, but is usually at a lower level of preparation. The most common approach isfor the student to transfer to a less demanding field of study.

Apprenticeship provides opportunities for all pupils to obtain qualifications (for these have at leastminimal interest in obtaining an education). Few students leave the education system prior to obtainingqualifications and those that do are usually motivated not by lack of success, but by complete lack ofinterest in obtaining an education. The motivating factors for continuing studies usually lie in the fact thatemployers are mostly not interested in those with incomplete qualifications.

Even if pupils do not obtain qualifications immediately after leaving basic school, they may re-enter dayschool or study during employment. If they have successfully completed part of their preparation, thenthis can be recognised and the student enters a higher study year (acceptance into a higher year at thesecondary school level must be approved by the School Office). However, if the student enters a differentfield or higher level of preparation, the school may require that differentiation tests be completed.

6. The Impact of Supranational Programmes and Organisations

The areas of preparation for a career and of incorporation of school graduates in the labour market are alsoaffected by projects or programmes implemented in co-operation with international organisations. Onlythe more interesting of all the programmes in this sphere can be mentioned here.

The most important of these initiatives in the sphere of education is the PHARE-VET: Reform ofVocational Education programme, which is carried out through 20 pilot schools and is concerned with

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creating a new model of multi-level study and its modular combinability, and the concurrent curriculumcreation and system of teacher training. One of the important characteristics of the curricula used in theseschools is the attempt to attain a greater degree of flexibility amongst graduates. An important innovativecurriculum features consists of inclusion of key skills (e.g. communications skills, the ability to processand use information) in all study branches. It is expected that this project will have a markedmultiplication effect in the entire system of vocational education in the Czech Republic. TheStrategicStudy of Vocational Education and Preparation, issued in 1992, has become a basis for this project.

A joint project was carried out in 1995 - 1996 in the Czech Republic in co-operation with OECD, devotedto assessment of school policy. One of the outputs of this programme is the OECD Recommendation forFurther Development of the Czech Education system. Both an abbreviated version of the Czech basicreport and the reports of examiners and their recommendations are included in the publication (see ref./6/). In respect to preparation for a career and other interconnected aspects, especially recommendationsconnected with establishing of a national curriculum council as a ministerial consulting body areimportant; this body would provide a broad platform of all interested parties within and outside theeducation system (Recommendation 5). Additional important recommendations include the establishing ofa national agency on curriculum, standards and certificates of vocational education (Recommendation 6)and the creation of tax stimuli for investments of enterprises in vocational education (Recommendation 7).A very important recommendation, whose implementation depends, however, on the future territorialdivision of the Czech Republic, is the creation of the intermediate level of management of education. Itwould have broad authority in monitoring the requirements of the region in relation to the educationsystem in co-operation with all important partners (Labour Offices, enterprises, professional chambers,etc.). Therefore they would also have a significant impact on the structure of education system and thecontent of the education provided. Recommendation 11 is complementary to this issue; according to thisrecommendation, school boards would be compulsory, and would include both representatives of pupilsand parents as well as representatives of the local communities - including employers (at the present time,the founding of such boards is voluntary). However, the recommendation also dealt with the subject of thecomparability of Maturita examinations, evaluation of pupils and students and the role of the schoolinspectors, etc.

Some of the implemented or prepared measures of education policy have already been affected by thediscussion that has arisen on the basis of the recommendations of the OECD examiners. This is true, e.g.,of emphasis on the sphere of vocational education and its co-ordination at the Ministry of Education, theprepared national curriculum council, etc. On the other hand, important recommendations connected withsupport for financing the education system by the business sphere have not yet been implemented.

It is becoming increasingly important to expect that difficulties connected with the transition from schoolto working life will be solved at the regional level, at least in as far as they occur at the lower level ofeducation. It applies also for formation of a qualification system and the entire system of supplementingqualifications and retraining.

Substantial support has been obtained from the PHARE programme in the sphere of further education.This support is utilised especially by the National Training Fund, operating as a foundation supportedfrom the finances of PHARE since 1994. In the first years of its activities, the National Training Fundconcentrated on support for education in the sphere of management. At the present time, it is organisingfurther projects connected with the relation between the labour market and education, and receives supportfrom state funding. In addition, this institution also includes the national office of the European UnionLEONARDO Programme, the National Observatory organised by the European Foundation for Educationin Turin and the management unit of the above-mentioned PHARE-VET programme.

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Activities in the sphere of an active employment policy have been extended in recent years to includeactivities carried out to support the PHARE programme, especially the PALMIF fund. This fund wasutilised especially to test new instruments of employment policy and to implement central (state-wide)and local projects to deal with unemployment. The implementation of the Czech-British project"Assistance for Young People at Risk in the Labour Market" was supported by the British Know-HowFund and it was based on a complex approach to dealing with unemployment amongst young people andapplication of foreign experience. The broadest programme of this type was implemented by the LabourOffice in Most. The most useful approach here was found to consist of placing young people in public-utility jobs in co-operating organisations with subsequent inclusion in a motivation course and acquaintingwith the work carried out in various professions (called a "little taste"), choice and a course in practicalretraining with subsequent entering into employment, usually on the basis of a mutual agreement. Thisactivity was extended in the District of Most to include preventative measures: in the last grades of, so far,nine basic schools, choice of a profession is included in the study programme, with emphasis on self-knowledge and decision-making. A further six Labour Offices that have registered for participation in theprogramme deal with problems associated with the younger generation endangered by long-termunemployment. It includes small groups of 9-12 unemployed persons. The programme has a high successrate and 80% of participants have found jobs.

7. Monitoring and Research

A. Statistical Data and Research

Basic data on the education system that can be used in investigation of the sphere of the transition fromschool to working life can be found in the yearbooks entitledEducation system Statisticsissued by theMinistry of Education - Institute for Information on Education: data on schools, numbers of applicantsand newly accepted pupils and students, total number of pupils and students and graduates, classifiedaccording to the type and level of the school, their founders, branches of study, sex, etc. This informationis available for the Czech Republic as a whole and for the individual Districts.

Information on supply and demand on the labour market is provided by the Ministry of Labour -Employment Services Department. This information is available for the Czech Republic as a whole andfor the individual Districts. This consists primarily of the Monthly statistics of job seekers and vacancies.These statistics contain, amongst other things:

• the number of people looking for work, flows into and out of unemployment, classified in groups - e.g.women, disabled, etc. and general information on school graduates (information since 1991),

• classification in the following groups:- of the total number collecting unemployment benefit,- the number of persons in retraining courses.

Another basic source of information consists of theMonthly Statistics of Active Employment Policy.Thesestatistics include, amongst other things (in the number of jobs created and job seekers placed in jobs,monthly - since 1993):

• records of public-utility jobs,• records of public utility works•••• records of jobs for vocational practice of graduates and young people under 18 (classified into

secondary school and high education graduates, and young people under 18),

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• records of sheltered workshops and workplaces for disabled persons, the number of jobs created andthe number of applicants placed in jobs

Graduates entering the labour market are included in the statistics of the Labour Offices on unemploymentamongst school graduates, based on the school level, field of study and sex (prepared by the EmploymentServices Department (April and September). These statistics include he number of graduates in the LabourOffice records, the number of graduates that have not yet found work.

The regular semi-annual and annual reports - analyses of the Labour Offices and evaluation ofimplemented projects of active employment policy are also useful.

Analysis of the subject of graduates (students) can also, in addition to school statistics, be based oninformation on specialised branches followed by the individual sectors For example, the number ofgraduates in branches of medicine are reflected in the information of the Ministry of Health (Health CareYear Book of CR 1994, Health Care in CR 1995,in statistical information).

The studyLong-term and Repeated Unemployment in the Czech Republicis also a source of informationon long-term unemployment (published by Lancashire enterprises plc., Tony Edwards, T .Sirovátka, J.•uhlová, E. Micková).

The above survey of statistical information can be supplemented by further sources:

The Ministry of Labour:- Statistical Yearbook of the Labour Market- School Graduates Registered at Labour Offices - Yearbook (prepared together with the Ministry

of Education)- Statistical Yearbook in the Sphere of Social Affairs- Employment Services in CR in 1990 - 1995- Time Series in the Labour Market, etc.

The Czech Statistical Office:- Statistical Yearbook of the Czech Republic- Schools and School Facilities in the Czech Republic in the School Year- Population Forecasts- Time Series in Basic Indices of Labour Statistics- Labour Force Surveys

Information on employment structure is used only occasionally to influence the structure of the educationsystem and the contents of the study programmes offered. For example, the Ministry of Health uses aspecially prepared forecast of trends in the health-care sector as a guideline in deciding the number ofplaces in health-care schools. The Ministry of Education utilises surveys obtained from the Labour Officeson school graduates applying for employment for the information of its own office and schools as well asSchool Offices. However, statistics do not describe the specific features of the individual branches andespecially the opinions of graduates and employers on the level of teaching and mutual expectations.

In the framework of sectoral studies of the Ministry of Education, surveys of the relationship between thelabour market and education have been carried out since 1994 (by The Research Institute of Technical andVocational Education and, in 1995, the Institute for Public Opinion Surveys) and surveys of the placing ofthe graduates of the individual higher education institutions and faculties have been carried out in theframework of the Fund for Higher Education Development (in 1995 this was also part of the sectoral

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studies of the Ministry of Education). For 1998 an overall survey of higher education graduates is beingprepared, which would provide summary and comparable information on this level of education andwould provide a basis for further studies of the placing of graduates over time - and possibly also incomparison with the graduates of higher professional schools. Since 1990, the opinions of students and theadult population on the suitability of education in the labour market have become part of broadly targetedsociological studies (e.g. by the AMD Agency/Institute for Information on Education).

As part of the Czech participation in the projectTransition from School to Work, towards the end of 1997a sociological survey will be made of the placing of school graduates in the labour market, which willhopefully cover some currently blank areas in studies in this sector. The results of the survey will consistof an analysis of the connections between education and the professional pathway of the graduate,evaluation of preparation for a career from the viewpoint of practice, and evaluation of inter-generationaleducational mobility.

The Czech Republic has already been included inNetworks B and Dof the OECD INES project -monitoring the results of education and also participating in studies of employers.

Current Problems and Inadequacies in Monitoring and Research

In spite of the fact that a number of studies have already been carried out, there is a lack of systematicmapping of the placing of graduates in jobs based on accord with the achieved level and branches ofeducation and possibly also changes in this placement over the time elapsed following completion ofstudies and over the last few years.

There is a lack of documents that would provide a deeper explanation of the fact that the increase in thenumber of graduates, especially of universities, is slower than the increase in the number of students - it isnot clear, e.g., to what degree students substantially and to a great degree prolong their studies, andwhether more than formerly end their studies prematurely, the role played in this process by employment(remunerative activities), etc.

There is no exact information on the intensity of the contacts of various levels and types of schools withpotential employers, how many external professionals are active in these schools and to what degree (jointdata is collected for "external employees", i.e. external professionals as well as those employed at otherschools).

Analyses and estimates of trends in the labour market based on qualification requirements or thecompleted level of education are only in their initial stages; such studies would provide various levels ofschools with information on optimisation of the numbers of students accepted into the individual branchesof study. Prospects for trends in the labour market in the regions are only slightly more advanced -although even here the information is not consistent: it depends greatly on initiatives and mutualcommunication amongst the individual participants (schools, Labour Offices, District administrativeoffices and School Offices, and employers).

Except for job graduates programme, there is a lack of separate studies of school graduates participating inother programmes in the framework of the active employment policy. From the standpoint of placing ofschool graduates in the labour market and for evaluation of their preparation by the education system, itwould especially be useful to systematically study the categories and structure of school graduates inretraining courses, and possibly also other programme instruments of active employment policy.

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So far, a comprehensive and methodically comparable evaluation of the successfulness and effectivenessof the individual instruments of active employment policy has not been completed. At the present time asurvey is being prepared and will be carried out during the coming year by the World Bank.

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SUMMARY

1. Prior to 1989, there were rigid student quotas planned for individual schools and courses and thegraduates as a rule entered their first employment immediately after graduation. Almost all thegraduates were employed despite the fact that their qualifications may not have matched their jobs.The staffing figures for individual companies were also planned. There was no labour market as such.As a result of low productivity of labour there was a significant shortage of manpower.

2. Economic transition gave rise to substantial changes in labour market, but it did not hinder the smoothtransition of young people from education to working life (with the exception of low-skill groups).The demand for labour has seen a significant shift in focus and structure towards the service sectorand occupations linked to operation in a market economy. The education system has so far beenresponding flexibly to the changing needs. Economic recovery maintained low unemployment rateaccounting for 3 to 3.5 % and has increased the rate of employment by about 1.5 to 1 % while thedemand for high-skill labour has been growing. The employers have been showing a good degree ofinterest in qualified graduates. In some professions, fresh graduates are given preference especiallybecause of their ability to adjust to circumstances, to learn and also for their language skills; thesequalities are of essential importance in the period of economic transition and they are usually hard tofind among middle-aged or older workers.

3. The changes to the education system following 1989 meant a broader educational supply especiallywith respect to the structure of courses, qualification grades and the system's ability to respond to theinterests of students. The changes in course structure and curricula content increased flexibility inproviding placements for young people in the labour market. The liberalisation policy in education andinsufficient capacity of the central government and social partners to influence the development ofeducational supply has in some courses (branches) led to higher enrolment figures than the current orfuture labour market needs would require. The length of education is increasing by the fact, that youngpeople are studying more than before in the secondary schools with Maturita and that they combinetheir study. The increased duration of education is also due to the official extension of highereducation by one year (in 1990) and the extension of compulsory education at "basic school" from 8 to9 years (in 1996/ 97). This represents a shift in the point of transition from education to working life.

4. Characteristic of the progression of young people through the education system is a high proportion ofsecond level education in which almost all primary school- leavers continue their education. The drop-out rate in secondary schools is very low because there is a high educational supply which enables theunderachieving students to switch to one of the less demanding courses including two-yearapprenticeship training programmes. Following the completion of secondary school most youngpeople (over 70%) proceed to find employment. Progression to third level courses is highly selective(only about 50% of applicants succeed in entry examinations). 27% of young people continue to studyfollowing the completion of secondary education while 6 to 7% of 18 to 19-year-olds enrol at higherprofessional schools and about 20 % are admitted to universities and higher education institutions.

5. Depending on the progression of young people in the system of education the transition from school toworking life focuses primarily on young people who have completed their secondary education, i.e. 17to 18 year-olds. In the age 24-25 the most of young people is out of the education system.

6. The economic transformation and social change has highlighted the significance of education withregard to social status as well as income. Increasing diversity in the education system which is linked

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to the changes in the schools system, results in a much greater individuation of educational pathways.Although there is no systematic monitoring of data concerning students who take a year out or changetheir course during their studies, some researches suggest that over the past few years the duration ofstudy has had a tendency to increase. Students are more likely to take language courses prior toentering employment and so on. Greater variation in job opportunities, as well as growing incomeensuing economic change provide more and more incentives especially for university students forcombining study with employment or self-employment.

7. Although the unemployment rate of school-leavers and graduates is higher than the average in thepopulation (that was 3.5% as of the end of 1996), it does not constitute a problem (with the exceptionof low-skilled youth) and is of short-term nature. The estimated unemployment rate amongunqualified youth accounts for 13 to 20% this rate is however limited to a narrow group in whichrepresents about 6% of young population up to the age to 29 which continues to decrease. Theproportion of unemployed youth among secondary vocational school-leavers amounts to 4.4%, as forsecondary technical school leavers the figure represents 2.9% and for higher education graduatesrepresents 1.5%. However, regional concentration of unskilled unemployed youth constitutes aproblem which also has an ethnic dimension (Romany population).

8. The projected increases in labour force resources up to the year 2000 represents about 0.5% perannum. Depending on the progress of economic growth, technical restructuring and labourproductivity, the expectation is that about a half of this increase will be absorbed by the labour market.When the average unemployment rate increases the so far hidden mismatches between graduatequalifications and employers' requirements might surface in the next few years. In the longer termperspective the restricted growth in human resources after the year 2000 should generate a positiveimpact on the work involvement of young generation.

9. Relative ease of incorporating most groups of school-leavers and graduates in the labour market hasnot called for the introduction of proactive policies integrating measures for education, labour marketand social partners. Participants in the process have responded in an uncoordinated manner. Co-operation between schools and employers is usually organised at a regional or individual school's levelwithout any governmental incentives. Over the past few years the Ministry of Education has beenpreparing more systematic governmental interventions including information-related and institutionalco-operation with the Ministry of Labour, which focuses on the prospects of school-leavers in thelabour market. Absence of long term forecasts and outlooks concerning labour market developmentmakes the process more difficult. Several programmes within the framework of active employmentpolicy focus on promoting the employment of school- leavers of all levels of education by subsidisingjobs to employers, operating occupational guidance centres and by funding retraining courses. Thesuccess of these policies is enhanced by flexible combination of different programmes to respond tothe issues relevant to individual groups of school-leavers (especially those with low skill) or regions.

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NOTES TO THE TEXT

1 According to international methods, economically active persons are considered to include bothemployed and unemployed persons.

2 In addition to this effect, the period of study was also lengthened as a result of legislative changes,which (in 1990) prolonged university study by 1 year. In the future, the effect of prolonging of basicschool attendance by 1 year will also appear (beginning in 1996 - see the next note).

3 The length of compulsory school attendance and the length of basic school changed in 1989. Prior to1989, 10-year school attendance was compulsory and pupils attended basic school for a period of 8 years.Following 1989, compulsory school attendance was shortened from 10 to 9 years and it became possibleto comply with this at basic schools (basic school attendance was prolonged from 8 to 9 years). In 1996, itwas decided that the 9 years of compulsory school attendance must occur in basic school.

4 Mentally handicapped children are educated in special and auxiliary schools, vocational schools andpractical schools on the basis of modified teaching programmes corresponding to their level ofunderstanding abilities.

5 Higher professional schools were introduced as a result of an amendment to the School Act of 1995, asthe only form of non-university tertiary education (ISCED 5). The share of students accepted into theseschools in the nineteen-year age group equalled 7% in 1996.

6 The definition of an unemployed school graduate according to the Labour Code is as follows: Thegraduate is a person looking for employment whose overall period of employment in an employmentposition or similar position following successful completion of study (preparation) does not exceed twoyears. In this connection, the proportion of unemployed school graduates in the overall number of schoolgraduates was calculated on the basis of two graduation years.

7 The increasing share of those accepted for higher education in a given population year is affected notonly by increasing interest in study, but also by the demographic decrease in the number of young peopleof the given age.

8 Eurodelphi Surveys 1993 - 1996, co-ordinator W. Leirman. The surveys were concerned with stimuli,forms and results of adult education. Respondents from CR placed great emphasis on the importance ofinitial education and qualifications for personal development of the individual and employmentopportunities.

9 The share of economically active women amongst those with basic education in the 20-24 and 2529year age groups equals 50-60%.

10 Almost one half of long-term unemployed in CR consist of persons with incomplete education or onlybasic education.

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11 Professional experience amongst those studying in the branches of services, agriculture, constructionand some others is obtained in the third grade, and usually also in the second grade, directly in enterprises.In many cases, the students occupy positions in operations workplaces, where they work under thesupervision of company employees. In branches where there is little interest in apprenticeship graduates, itis difficult for the school to arrange for inclusion of the student in operations and student preparationusually occurs in school workshops. In some cases, it occurs that the student is trained without evercoming into contact with the working environment.

12 The proportion of practical training is higher in branches requiring closer acquaintance with theworking environment, for example hotel school studies include 2 to 4 weeks of continuous practicaltraining in each school year, along with one day per week on a regular basis in the 3rd and 4th years,agricultural branches of study usually include a significant share of practical training under operationalconditions (2 to 4 hours a week in all years and 15 to 19 weeks of operational practice throughout theentire study period), while the share of practical training under operational conditions in health-carebranches equals up to 1/3 of the entire training period.

13 For example, those studying at the Faculty of Mathematics and Physics do not have any compulsorypractical training, while students in technical branches are usually obliged to complete 4 weeks ofpractical training during their study and this can continue in the framework of their diploma thesis.

14 The relationship between unemployed graduates and their overall number in a given year based on thelevel and branch of study is found from a database, which is created jointly by the Ministry of Educationand the Ministry of Labour. This database is an output of the research project "Studying and EvaluatingRelationships between Resources and Requirements for the Labour Force and Consequences in RegionalClassification in CR", which was completed by the Faculty of Mathematics and Physics of CharlesUniversity in 1993 - 1995 in response to a request from the Ministry of Education.

15 These surveys were carried out on the degree of successful employment of higher education graduates,in 1995 - 1996, with the support of the Fund for the Development of Higher Education Institutions at theindividual schools and faculties. The study usually included the period of the nineties, and sometimes alonger period.The results of these surveys indicate that graduates usually obtained employment through their own choiceand activity, in about 55-70% of cases; however, this share decreased over the years. On the other hand,the proportion of choice of employment through the Labour Offices increased and now equals about 3-25%, while choice through use of advertisements occurs in less than 11% of cases. Particularly in thetechnical and agricultural branches, enterprises actively visit schools with employment offers, which arenow utilised by about 20% of students. Students stated that 46-85% of graduates had no or only slightdifficulties in obtaining employment, with the exception of medical faculties, where this number decreasedto 30-40% of graduates.

16 A survey carried out by the Confederation of Industry in 1996, in the framework of which more than500 respondents expressed an opinion, corresponding to about 50% employment in industry.

17 According to the results of a survey by the Institute for Information on Education, carried out in Juneof 1995, almost 90% of those questioned would like their children to complete at least secondary school(55% secondary technical school and more than 30% "gymnasium"), while only 12% would prefersecondary vocational schools. In addition, more than one half would want their children to attend highereducation. About one third of those questioned would prefer higher professional schools.

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REFERENCES

/1/ Human Resource Development Report Czech Republic, Faculty of Natural Sciences, CharlesUniversity, Prague (prepared in the framework of the UNDP programme)

/2/ Main Economic and Social Indicators, Czech Republic, Bull. No 8, Research Institute of Labour andSocial Affairs, Prague 1996

/3/ Employment and Unemployment in the Czech Republic, Labour Force Sample Survey, Autumn 1996,CSO, Prague 1996

/4/ Review of the Labour Market in the Czech Republic, OECD - CCET, Paris 1995

/5/ Employment Outlook, OECD, Paris 1995

/6/ Reviews of National Policies for Education - Czech Republic, OECD, Paris 1996

/7/ Annual Report on the State and Development of the Education and Training System of the CzechRepublic, Prague, Institute for Information on Education 1996

/8/ The Future for Adult Education in Europe, Eurodelphi 1993-1996, co-ordination W. Leirman

/9/ Studying and Social Conditions of University Students, research realised by the Centre for HigherEducation Studies, 1996, team leader Dr. Holda

/10/ Development of Careers Services at Czech Universities - presentations from the international seminarof projects under the TEMPUS-PHARE programme No: CME-01004-95, Prague, Czech University ofAgriculture, September 1996 (essays by Z. Freibergová and E. Straková)

/11/ University Graduates in the Labour Market - The main results of the projects in 1996, Summary ofthe seminar, Ministry of Education, Youth and Sports, 1997

/12/ Programme of Network Optimisation of Secondary Schools, Higher Professional Schools and SchoolInfrastructure, Prague, Ministry of Education, Youth and Sports, 1997

/13/ Programme SET 1996, What are our Secondary Schools, Prague, Institute for Information onEducation 1996

/14/ Quality and Accountability, The Programme of Development of the Education System in the CzechRepublic, Prague, Ministry of Education, Youth and Sports, 1994

/15/ Regional Aspects of Development of Secondary and Higher Professional Education, Prague,University of Economics 1996

/16/ Strategic Study of Vocational Education and Training, Final report, Prague, Birks Sinclair andAssociates Ltd., in co-operation with Research Institute of Pedagogy, Bratislava and Research Institute ofTechnical and Vocational Education, Prague 1992

50

/17/ Education and Labour Market - Main Factors of Vocational Education, Research Institute ofTechnical and Vocational Education, Prague 1995 (H. Úlovcová - J. Strádal)

/18/ Vocational Training, Results of Research, Prague, AMD 1996

/19/ Curriculum Policy in the Czech Republic after 1989 and its Reflection in the Development ofVocational Branches in Secondary Vocational Education, Research project of the Ministry of Education,Youth and Sports, 1996 (O. Kofroňová - J. Vojtěch)

/20/ Integrated Secondary Schools, Analysis of empirical survey for the project of the Granting Agency ofthe Czech Republic : Trends of the Czech Education in the European Perspective, 1995 (O. Kofroňová - J.Vojtěch)

/21/ Higher Education in the Czech Republic, Guide for Foreign Students, Prague, Centre for HigherEducation Studies 1996

/22/ Programme Declaration of the Government of the Czech Republic, Prague, Czech Parliament 1992,1996.

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ANNEX 1:Structure and functions of the institutional system of labour market

Government policy is pursued by:− Ministry of Labour and Social Affair− Labour Offices in the districts

1. Functions of Employment Services Department of the Ministry of Labour and Social Affairs:

• continually monitors and evaluates the situation in the labour market, on the basis of this it adoptsmeasures to regulate labour supply and demand and to balance manpower resources and requirementsand to direct manpower coming from abroad and going abroad, and it prepares prognoses of the stateof employment

• prepares concepts of government employment policy including addressing major issues inherent to thelabour market (for example, employment of problem groups of citizens), prepares its comments onproposals affecting government employment policy

• in co-operation with the relevant central state administration authorities it prepares programmes ofmeasures creating jobs for employees made redundant due to structural, organisational or streamliningmeasures

• promotes and financially supports creation of public utility jobs and public utility work, preparesgovernment retraining programmes and/or establishes state retraining centres

• administers the funds for pursuance of government employment policy and decides how they are used• performs controls in the area of employment• grants and withdraws permits of natural persons and legal entities to find employment for employment• is in charge of planning and supplies of software and hardware for the employment information system• directs the methodological, financial and technological aspects of the work of the job centres

2. Functions of Labour Offices

The Labour Office (LO) is a territorial state administration body and its superior body is EmploymentServices Department of Ministry of Labour and Social Affairs. The status of the LO is defined in itsfoundation deed and statute. The LO is headed by its manager who is appointed and recalled by theMinister of Labour and Social Affairs of the Czech Republic.

Labour Offices :• monitor and evaluate the situation in the labour market, prepare the concept of development of

employment in their district, take measures to regulate supply and demand• inform the public about work opportunities , professional training and retraining courses, and inform

employers about available manpower resources• find suitable employment for job seekers• provide advice to the public related to job seeking, vocational guidance, professional training and

retraining• keep records of job seekers, vacancies, work permits issued to foreign nationals or stateless persons• decide on removal of job seekers from the register, determine claims and amounts of unemployment

benefit for job seekers, administer payments of unemployment benefit and decide on its payment,withdrawal, suspension or rebate

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• organise and regulate retraining courses for job seekers• support employers and business creating new vacancies, posts for school-leavers to get practical

working experience and obtain qualification for young job seekers, create public utility jobs and jobssheltered workshops and workplaces for the handicapped

• issue and withdraw work permits for foreign nationals and stateless persons and issue permits toemployers wishing to fill their vacancies with foreign nationals

• co-operate with institutions influencing the job market, with employers engaging job seekers, placeemployees made redundant due to structural changes or organisational or streamlining measures, co-operate with social security authorities, state health care authorities, and other state administrationsauthorities

• supervise compliance with legal provisions concerning employment, the Labour Code, the wageregulations, impose sanctions, deal with complaints

• manage the funds for pursuance of government employment policy and operation of the LO

3. Active employment policy instruments

Active employment policy pursued by Ministry of Labour and Social Affairs and Labour Offices in theCR is an important instrument of government employment policy.From the perspective of successful realisation of active employment policy it is particularly important tochoose instruments which best correspond to the current economic situation in the country and itsreflection in the labour market. The instruments of active employment policy focus particularly on supportof employment in problem regions and support of employment of the so-called problem groups in thelabour market (the handicapped, long-term unemployed and school leavers entering the labour market forthe first time).

The instruments applied by the Labour Offices are:

Public utility jobsThe purpose, characteristics and measure of financial support for creation of public utility jobs are definedby Article 5 of Act No. 9/1991. The procedure to be followed in providing the financial support is laiddown by Decree of the Ministry of Labour and Social Affairs of the CR No. 314/1993.

Public utility jobs should increase the number of jobs available to job seekers for whom jobs cannot befound in another way, including material incentives to start small business.One of the prerequisites for creation of public utility jobs is low number of vacancies by profession orregion.

Public utility jobs:• are new jobs created by employers on the basis of written contracts with LO. As a rule, such vacancies

are filled by LO for at lease two years with job seekers for whom work cannot be found in another way• are new jobs for job seekers registered with LO who start independent gainful activity

There is no legal claim to the grant for payment of the costs of creating public utility jobs and LO mayprovide in the form of:a/ payment of the interest on loans granted by financial institutions to employers for creation of new jobs;b/ interest-free financial assistance for creation of new jobs;c/ non-returnable subsidy.

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There are single-purpose funds whose use is specified in the contract. LO may provide for one new job upto CZK 50 000 depending on the situation in the labour market.

Public utility work

Public utility work means new working opportunities created especially for hard-to-place and long-termunemployed registered with LO.- These jobs are created by communities or employers on the basis of a written contract with the LO for

short periods (Act No. 9/1991), for no longer than twelve consecutive months from the day theapplicant starts in the job.

- The financial contribution for payment of the employee s wages may be provided to the employer upto the actual amount of wages including social and health insurance.

Retraining

LOs organise retraining courses in cases where the demand structure does not correspond to the supplystructure in the labour market and retraining provides for new or further employment in a suitableprofession.- Retraining takes place on the basis of a written contract between the LO and a job seeker which

specifies the conditions under which retraining is done (Decree No. 21/1991 as amended by DecreeNo. 324/1992).

- The LO pays the job seeker the course fees in full and depending on its resources it may contribute toother expenses (catering, accommodation, travel expenses). During the retraining course the jobseekers benefit increase to 70% of his/her average net monthly earnings (income decisive forcalculation of the unemployment benefit).

- Two types of retraining courses are generally organised: specific, for specific professions withemployers promise of employment, and non-specific, without any promise of employment, where theattendance of the course is trained to acquire skills which increase his/her chance in the labour market.

In an endeavour to achieve high efficiency financial support went particularly to targeted retrainingcourses which results in their high effectiveness (70%).

Jobs for graduates

The job centre may pay to any employer who creates jobs for practical working experience of graduatesregistered with LOs for up to one year some or all of the wages.- This financial contribution for employers related to engagement of unemployed graduates makes

things easier for young people starting their first jobs and thus helps maintain their unemployment ona socially acceptable level even in periods when strong population age-groups enter labour market.

Sheltered workshops and sheltered workplaces for the handicapped

Sheltered workshops and sheltered workplaces are places in which at least 75% of the handicapped work.A sheltered workplace may also be a workplace set up in the home of a handicapped person.- LOs provide financial contributions (subsidies) to employers setting up sheltered workshops or

sheltered workplaces under Decree of the Ministry of Labour and Social Affairs of the CR No.115/1992 up to the amount of 50% of the costs probably expended in setting up, up to a maximum ofCZK 80.000 per job.

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- The job must be created by the employer on the basis of a written contract with the LO, usually atleast two years from the date the contribution is granted. There is no legal claim to the contribution.

- In addition, the LO can grant contribution for operation of sheltered workplaces in part payment ofoperating expenses up to the amount of CZK 20 thousand annually per handicapped person.

Subsidy for part-time work

If any company changes over to a new prospective programme, the LO may, with the objective ofpreventing temporary lay-offs, partly subsidise the wage costs of the employees affected by thechangeover.- Use of the active employment policy instruments depends on the situation in the region and

requirement emerging from analyses of the labour market.

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ANNEX 2:Description of the School System

Basic School (ISCED 1,2) encompasses primary and lower secondary education. Schooling is compulsoryfor children aged 6-15.

On orderly completion of compulsory schooling, practically the entire age group proceeds to some type ofsecondary education. Pupils with higher intellectual potential may sit selective entrance examinations forlong Gymnasia upon completing the fifth or seventh grade of Basic School; in the opposite case, if thepupils lag behind the usual progress of teaching, they may be allocated to special 9-10 year schools, tocramming 10 year schools or to specialised schools for handicapped pupils, where teaching progresses at alower pace. Pupils who leave basic schools earlier due to their inadequate performance may undergotraining for simple jobs in 1-2 year vocational courses with modified curricula, offered byApprenticeSchools. Another option (available as of 1995) is 1-3 year training for simple jobs offered by the newlyestablishedPractical Schools, which may be attended even by pupils who have completed a special orcramming school.

Secondary schools (ISCED 3) provide upper secondary education (except lower grades of long secondaryschools). All those who have successfully completed Basic School may apply for admission and sitentrance examinations. The usual entry age is 15. TheGymnasiumprovides four-, six- and eight-yearcourses of complete secondary general education, terminated by a Maturita examination, which entitlesthe graduates to apply for admission to higher professional school or higher education institution. Theteaching focuses on preparation for further studies.Secondary Technical Schools (SOŠ)provide secondarytechnical education, mostly in four-year courses, except the conservatories, which may take 6-8 years ofstudy. They prepare students for professional jobs and the four-year study completed by Maturitaexamination also qualifies them to apply for higher education.Secondary Vocational Schools (SOU)offersecondary vocational education for worker professions and professional jobs. Their programmes includetheoretical teaching and practical training, undertaken mostly in the school workshops or practical trainingcentres or, in higher grades, directly in a company. The entire training takes 1-4 years and is completed bya final examination. A small proportion of pupils (around 5 percent) attend four-year training coursescompleted by Maturita examination, which also qualifies for application for further studies. A new type ofsecondary school, established in 1995, is theIntegrated Secondary Schools (ISŠ), which offers vocationalprogrammes typical for secondary vocational schools, as well as technical programmes typical forsecondary technical schools. These types of programmes are thus concentrated within one institution.

SOŠ, SOU as well as ISŠ offer two-year courses of follow-up studies (ISCED 3) for the graduates fromthree year vocational programmes not completed by a Maturita examination. This enables students toacquire complete secondary vocational education with a Maturita examination. Another option, cancelledin 1995, was the 1-3 year post-Maturita programme designed primarily for the graduates of Gymnasia,who would thus acquire vocational qualification, or for the graduates from SOŠ, who would thus changetheir professional qualification or acquire a specialisation.

In 1995 the education system was expandedby Higher Professional Schools (VOŠ- ISCED 5), usuallyentered by youth aged 19. (Until 1995 there were some two dozens of such schools functioning as pilotschools within an experimental project started in 1992.) They offered 2 - 3.5 years specialised in-depthstudy programmes, preparing the students for qualified professional jobs. A successful completion ofsecondary education along with the Maturita examination qualified anybody to apply for admission. VOŠthus represent a non-university alternative to university higher education.

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Graduates from higher professional schools as well as graduates of secondary schools with Maturitaexamination may apply for admission to higher education. At present this includes universities andinstitutions of higher education (with university status - ISCED 6,7). They accept students based on asuccessful entrance examination, usually at the age of 19 and offer three levels of education.Bachelor'sstudies(ISCED 6) take 3-4 years and focus either on professional training or on the first level of highereducation. It is completed by Bachelor's examination.Master's and Engineers's education (ISCED 6)focuses on the acquisition of theoretical and practical experience needed for intellectually demanding jobsand usually takes 5-6 years. It is completed by final state examination, along with the defence of adiploma thesis. The highest level is the postgraduate doctoral studies (ISCED 7) which prepare forcreative scientific work. It takes at least 3 years and is completed by a defence of dissertation thesis and arigorous examination.

(See the scheme of the Education System in the Czech Republic - 1990 ,1996)

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ANNEX 3:Survey of Certification in the Czech Education System

On successful completion of the 9th grade of Basic School or the corresponding grade of long Gymnasiumthe pupils acquire basic education. Its nature is general. The acquisition of this level of education iscertified by an annual school report, which qualifies its holder to continue studies in some vocationalprogramme or secondary school. Practically all pupils proceed to secondary education, though there is acertain percentage of pupils (see below), who failed to complete successfully the Basic School, or do notcontinue their education and thus remain unqualified.

Secondary education certificates are issued based on examinations, the form of which is stipulated by law.The certificates have national validity and are recognised by employers. The examinations, though, areneither standard, nor external. They are organised by the respective schools and the students are examinedby a commission. The membership of the commission includes teachers active in the respective schooland the commission is chaired by an external person, appointed by the education administration.

Students acquire secondary vocational education (incomplete) by passing a final examination. Invocational programmes the final examination is comprehensive and verifies, in oral and written form, thepractical professional competencies and theoretical and practical knowledge of the candidate. Anapprenticeship certificate evidences the passing of the examination, it imparts professional qualificationon its holder and qualifies it to perform worker jobs or other simple operational, handling, clerical ortechnical activities pursuant to the nature of the vocational programme. In technical programmes the finalexamination has a similar role and is evidenced by a final examination certificate.

Students acquire complete secondary education on successful completion of (usually) 4 year studyprogrammes in Gymnasia (general) or secondary technical or vocational schools (technical) andsuccessful passing of Maturita examination. Maturita examination certifies the acquisition of general andtechnical knowledge and competence in the respective field and qualifies for further education at the post-secondary and tertiary levels (higher professional schools or higher education institutions). Maturitaexamination passed on completion of SOŠ and SOU programmes also establishes a qualification toperform more complex clerical and technical jobs, pursuant to the nature of the programme.

Students acquire non-university tertiary education on successful completion of a higher professionalschool programme and on passing an examination called the Absolutorium. The respective diplomaestablishes qualification to perform highly qualified, specialised and independent professional jobs,pursuant to the nature of the programme.

Higher education institutions graduates may acquire qualification at three levels - Bachelor's, Master's(Engineer's) and Doctoral. Higher education studies are completed by a state examination, involving thedefence of a diploma thesis. The graduates are issued a diploma, stating the field of their study and thedegree acquired. The diploma establishes a qualification to perform, according to the level of highereducation studies, a wide range of senior, systemic, strategic and creative jobs with heavy responsibility.

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ANNEX 4:Fundamental Political and Legal Documents

This Annex shows those provisions in political and legal documents, which concern the links between theeducation system and economic needs, or more specifically labour market needs and/or the transitionfrom school to employment.

A. Education Policy

The Programme Declaration of the Czech Government dated July 1992 refers to the importance of theeducation system for economic development of the society and to the intention to establish close linksbetween Governmental education policy and the economic reform. The Declaration goes on to say that inthe area of further education and specifically technical further education, the Government shall createpreconditions to strengthen close collaboration between the schools and the productive elements insociety. Though in this respect there is no mention made of the links between the curriculum andperformance on the one hand and the transition from school to employment on the other hand, reference ismade to the necessity to define in legal terms the core curriculum and educational standards appropriate toour national tradition and position within Europe.

The Programme Declaration of the Czech Government dated 23 July 1996 emphasises the role ofvocational schools, the importance of preconditions for training of qualified labour power, thepreservation of the system of technical training and the increased role of businesses therein. ThisDeclarationinter alia already stresses the need to refine the tools for evaluation of schools and teachingand the responsibility of the state for determining basic standards for teaching and its evaluation. Neitherin this Declaration a mention is made of the links with the prospects of graduates in the labour market.

Legal documents did have a major impact on the development of education and, from 1989 onwards, itsresponses to the changing economic context. These included specifically the Amended Act no. 29/1984 onthe System of Basic and Secondary Schools no. 171/1990 Coll., which created the preconditions forschool autonomy in determining the curriculum and organisation of studies and enabled the establishmentof non-state schools. The Amendment no. 138/1995 modified the very title of the Act to read The Systemof Basic, Secondary and Higher Professional Schools Act. It established the legitimacy of a new level ofeducation - the Higher Professional Schools. It also established a new type of specialised school - thePractical School - designed for the graduates from special schools or for pupils who have spent 9 years inthe Basic School and yet did not make it to grade 9.

The Amendment no. 138 dated 1995 established the obligation to complete grade 9 of the Basic School,thereby deferring the decision on the choice of further studies by one year (starting in 1990 most BasicSchool pupils graduated from grade 8 and attended grade 9 of compulsory education at a secondaryschool. Only those who did not expect to continue their education, studied grade 9 at the Basic School.)

A major development in educational legislation was the State Administration and School Autonomy Actno. 564/1990 Coll. As concerns the issues in question, it is fundamental that based on this Act, themanagement and financing of basic and secondary schools exercised at the level of regions, districts andmunicipalities by the education departments of the erstwhile National Committees (subordinated to theMinistry of Interior) was devolved to the district school offices - subordinated to the Ministry ofEducation, Youth and Sports. The extensive autonomy thus acquired by schools is gradually matched bythe activities of the Czech Schools Inspectorate, controlled directly by the Ministry as well as by measures

59

related to the including and excluding of schools to and from the education system, made possible by theAmendment of this Act dated June 1995.

The amendments improved the prerequisites for participative school management (besides teachers andparents also municipality representatives are represented on the school boards, which schools may set up)and further stresses the accountability of education to the public (the schools, education offices, theMinistry of Education and the school inspectorate are now obliged to publish annual reports).

The role of educational guidance, including career guidance, isinter alia taken up in the Pre-School andSchool Establishments Act no. 76/1978 Coll., amended in 1991.

The Act no. 522/1990 Coll. transferred the right to establish Secondary Vocational Schools frombusinesses to central bodies. The Act no. 474/1992 on Measures Within the System of CentralAdministration Bodies of the Czech Republic transferred the professional training of apprentices from theauthority of the Ministry of Education, Youth and Sports to the Ministry of Economy. The Act no. .../1996 re-established the former state of affairs and the Ministry of Education was, moreover, also put incontrol of Secondary Health Schools. These Acts had a major impact on the strategy and policy ofvocational training.

The Higher Education Act no. 172/1990 established an extensive autonomy of higher educationinstitutions and renewed their academic freedom. It contributed to the diversification of higher educationby introducing a shorter - Bachelor's - level of studies. By establishing the Accreditation Commission - aGovernment advisory institution - the Act created the prerequisites for quality control in higher education.Unlike at other levels of the education system, the Act does not allow for other than state institutions.

The survey of information related to the issue in question needs to be complemented by a paper titledQuality and Accountability. The Education System Development Programme for the Czech Republic,published by the Ministry of Education in 1994. Based on an analysis of the developments thus far thedocument divided the period after the social and political changes in 1989 in two stages:

1. Stage of fundamental structural and quantitative changes, diversifying the quantity and pluralityof education provision (1990-1993)

2. Stage of education system consolidation and support of quality improvement in the educationalenvironment (starting 1994).

As of 1994, the document refers to an active policy in education, increasingly using the followingmechanisms:

- Curriculum policy based on education standards and programmes which may be refined at schoollevel

- Attention to quality through evaluation and self-evaluation with emphasis on the outputs of theeducation process

- Diversified sources of funding of education and funding from the state budget tied to schoolperformance (according to student and pupils numbers) and to the quality of the education service

- Development of an information environment within a decentralised system, focused on the supplyof and demand for education, its performance, the prospects of pupils and students as well as thepublic opinion of schools and education

- Support systems for the development of schools and the implementation of governmentaleducation policy - special emphasis is laid on improving the professional competence of teachersand management staff.

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(The above mechanisms apply reasonably also to higher education institution - i.e. the education standardsdo not e.g. apply to such institutions, though the document envisages that their programmes are to besubject to stricter impartial evaluation.)

The new education policy strives to adjust as much as possible the course and outputs of the educationprocess to social needs. Reference is made in the document to increased participation of employersorganisations in the development of education standards, postponement of specialisation until later ageand higher levels of the education system, preparation for life-long learning through initial education. Theeducational institutions are supposed to better respond to specific local demands and to economic andsocial changes and have increased incentives to collaborate with industry or the world of work in general.The amendments of Acts dated 1995 were under strong influence of the Quality and Accountability paper.

B. Employment Policy

In the Czech Republic the policy proceeds from the Employment Act no. 1/1991 Coll., as amended andthe Act of the Czech National Council no. 9/1991 Coll. on Employment and the Activities of the Bodies ofthe Czech Republic in Employment, as amended.

The approach to unemployment rests primarily in the active employment policy implemented by theEmployment Services Department of the Ministry of Labour and Social Affairs and its territorial branches- the Labour Offices (LO). The law provides that youth unemployment (school graduates) may beaddressed by contributions towards the cost of practical training of school graduates and youth. TheInstruction of the Employment Services Department no. 2-1992, which specifies the procedure forensuring practical training of school graduates and youth regulates in detail the activities of the LO inapplying this tool. Based on this Instruction, the financial contribution may be provided for one year andthe agreement usually anticipates the preservation of the practical training place for two years.

The young people may also be allocated to public utility jobs and to public works. The details on theestablishment of such types of jobs and works are stipulated in the Ministry of Labour and Social AffairsDecree no. 35/1997 Coll., which specifies the procedure for establishing public utility jobs and publicworks.

The Ministry of Labour and Social Affairs Decree no. 21/1991 Coll. on specific conditions for retrainingof job applicants and employees, as amended, stipulates also the conditions for retraining of youth. Thispractically includes youth under 18, who failed in the education system. Further education of repeaters isthus ensured through the respective activities of the LO (this though involves the acquisition of basicqualification, rather than retraining in its proper sense).

Governmental Resolution no. 148/1994 on Measures to Address Unemployment in Most SeriouslyAffected Districts responded to the widening gap between various districts in terms of unemployment.

The survey of legislation may be complemented by the Decree of the Ministry of Labour and SocialAffairs of the Czech Republic no. 115/1992 Coll., on the employment of handicapped citizens.

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ANNEX 5:Territorial Structure of Unemployment of Graduates

Based on the results of the Labour Force Survey - autumn (as at 30 September 1996), the unemployedgraduates numbers were as follows: North Bohemia - 5,519, North Moravia - 9,594, out of the total of31,428 unemployed graduates in the Czech Republic.

The highest numbers of the most difficult group of registered unemployed - below the age of 18 with basiceducation - which totalled 5,015 in the Czech Republic as at 30 September 1996, were recorded again inNorth Moravia (1,199 persons) and in North Bohemia (1,414 persons), followed by South Moravia (686persons), Central Bohemia (515 persons), while the lowest number was recorded in South Bohemia (286persons).

Out of 2,738 graduates of Secondary Vocational Schools with Maturita examination and 10,294 graduatesof Vocational Schools without Maturita examination, the highest number of unemployed graduates withMaturita examination was recorded in North Moravia (919), South Moravia (602) and North Bohemia(345). As concerns graduates without Maturita, the highest number of unemployed was registered in NorthMoravia (3,721), followed by North Bohemia (1,956) and South Moravia (1,733).

Considerable regional differences also exist in terms of the numbers of unemployed graduates ofsecondary technical schools and gymnasiums. The highest numbers were recorded in North Moravia(3,266), followed by South Moravia (2,564), North Bohemia (1,702) and East Bohemia (1,587).

Out of the total 1,579 unemployed higher education graduates as at 30 September 1996, the highest sharewas again recorded in North Moravia (489) and South Moravia (471).

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ANNEX 6:Tables 1 - 28

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Table 01

MAIN ECONOMIC AND SOCIAL INDICATORSCZECH REPUBLIC 1990-1996

Variable 1990 1991 1992 1993 1994 1995 1996Change in % (as compared with previous year)

GDP, const.pr. -1.2 -14.2 -6.4 -0.9 2.6 4.8 4.4Employment -0.9 -5.5 -2.6 -1.6 0.8 2.6 1.1Productivity -0.3 -9.2 -3.9 0.7 1.8 2.3 3.2Industrial output -3.5 -21.6 -7.9 -5.3 2.3 8.7 6.8Export, curr.pr. 0.2 43.8 6.2 21.8 6.6 10.3 3.5Import, curr.pr. 8.6 18.5 40.5 5.4 14.9 28.6 12.7Consumer prices 9.7 56.6 11.1 20.8 10.0 9.1 8.8Nominal wages 3.7 15.4 22.5 25.2 18.6 17.5 18.0Real wages -5.5 -26.3 10.3 3.7 7.7 7.7 8.5

rates/ratiosActivity rate 1/ - 63.6 - 65.1 - - 61.2Male activity rate - 72.9 - 71.2 - - 71.3Female activityrate

- 55.0 - 52.6 - - 51.9

Reg. unemp. rate2/

0.8 2.6 3.1 3.0 3.3 3.0 3.1

LFS unemp. rate3/

- - - 3.7 3.8 3.3 3.5

Male unemp.rate - - - 3.0 3.3 2.8 2.9Female unemp.rate

- - - 4.5 4.3 3.9 4.2

bill. USD

Trade balance -0.8 0.8 -1.4 0.3 -0.7 -3.8 -5.9Bal. of payments:current account 4/ - - 0.0 0.6 0.3 -1.4 -4.3capital account - - - 2.5 2.1 7.5 3.9

Direct for. invest. 0.1 0.7 0.9 0.6 0.8 2.6 1.4For exch. reserves - - 3.6 6.2 8.9 17.2 16.9Gross debt - - 7.5 8.5 10.7 16.3 20.4

Notes:1/ Labour Force Survey in % of total population aged 15+, end of year.

2/ registered unemploment in % of Labour Force, annual average.

3/ Labour Force Survey unemployment rate, end of the year.

4/ including trade with services, in convertible currencies.

Table02

STRUCTURE OF POPULATION BY ECONOMIC ACTIVITY AND EDUCATION

AGED 15 YEARS AND OLD in %

Level of education Population Employed Unemployed Not economicallyactive

/school Total Males Females

Total Males Females

Total Males Females

Total Males Females

Year 1991Basic 1/ 34.5 26.0 42.3 19.7 15.0 24.8 - - - 64.2 56.1Secondary 2/ 35.5 43.2 28.2 43.3 50.6 34.8 - - - 20.0 23.0Secondary withGCE 2/

22.9 21.4 24.4 27.7 23.1 32.8 - - - 13.4 16.2

Tertiary 3/ 7.2 9.4 5.1 9.5 11.3 7.6 - - - 2.4 4.2

Year 1993Basic 1/ 27.3 19.0 34.9 13.3 9.1 18.1 29.4 26.5 31.6 51.1 42.3 56.5Secondary 2/ 38.4 46.6 31.0 44.9 52.7 35.9 41.8 46.3 38.3 27.1 31.6 24.3Secondary withGCE 2/

26.4 24.2 28.4 31.3 25.9 37.6 24.7 21.6 27.2 18.2 20.5 16.8

Tertiary 3/ 7.9 10.2 5.7 10.5 12.3 8.4 4.1 5.6 2.9 3.6 5.6 2.4

Year 1996Basic 1/ 24.9 17.0 32.3 10.6 7.3 14.5 32.4 33.8 31.2 47.8 38.1 53.8Secondary 2/ 39.9 47.9 32.2 46.0 53.1 37.4 42.4 45.9 39.6 29.6 35.7 25.8Secondary withGCE 2/

27.5 25.2 29.8 32.7 27.3 39.3 22.1 16.4 26.8 19.4 21.4 18.3

Tertiary 3/ 7.7 9.9 5.7 10.7 12.3 8.8 3.1 3.9 2.4 3.2 4.8 2.1

Notes:1/ ISCED 1+2 /include not completed/2/ ISCED 3 /secondary vocational and technical school/3/ ISCED 5, 6, 7Source: 1991 - Population census, 1993, 1996 - Labour Force Survey

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Table 03a

Labour Force Participation (in thousands): Czech Republic - March3, 1991

Age group Population Economically active population Participation Economically inactive population

aged 15+ Total Employed Unemployed in % TotalStudents,

apprenticesadd.child care leave

in household pensioners others

Total15-19 870.4 299.4 278.8 20.7 34.4 571.0 563.1 2.0 1.7 2.2 2.020-24 685.5 501.8 480.6 21.3 73.2 183.7 68.9 101.0 7.8 4.8 1.225-29 688.1 573.3 554.0 19.3 83.3 114.8 4.8 89.4 13.2 6.3 1.030-34 679.5 622.2 606.3 15.9 91.6 57.2 35.5 11.3 9.4 1.135-39 805.6 763.2 747.8 15.4 94.7 42.4 16.0 9.9 15.6 0.940-44 843.9 806.7 793.2 13.6 95.6 37.1 4.6 8.0 23.9 0.745-49 683.8 645.9 636.4 9.5 94.5 37.9 0.2 6.0 31.2 0.550-54 526.4 466.0 460.8 5.2 88.5 60.4 4.8 55.3 0.355-59 516.8 280.4 278.4 2.0 54.3 236.5 4.2 232.0 0.260-64 534.5 115.8 115.8 21.7 418.7 5.3 413.2 0.165+ 1303.3 97.6 97.5 0.0 7.5 1205.8 13.4 1191.7 0.7Total 15+ 8137.8 5172.3 5049.5 122.8 63.6 2965.4 636.8 248.8 85.6 1985.6 8.7Men15-19 445.0 157.4 146.4 11.0 35.4 287.7 285.3 0.0 1.3 1.120-24 350.7 309.7 13.0 88.3 40.9 37.6 0.0 2.7 0.725-29 350.8 343.8 333.3 10.6 98.0 7.0 2.9 0.0 3.4 0.630-34 344.7 339.2 330.6 8.5 98.4 5.5 0.0 4.8 0.735-39 405.6 397.4 388.9 8.5 98.0 8.2 0.0 7.7 0.640-44 423.3 411.4 404.0 7.4 97.2 0.0 11.6 0.445-49 338.7 323.7 318.4 5.3 95.5 15.1 0.0 14.9 0.250-54 256.4 234.7 231.6 3.0 91.5 21.8 21.6 0.155-59 244.6 195.8 193.9 1.9 80.0 48.8 48.7 0.160-64 241.1 68.4 68.4 28.4 172.8 172.7 0.165+ 490.9 57.2 57.2 0.0 11.7 433.7 433.4 0.3Total 15+ 3891.9 2838.6 2769.3 69.2 72.9 1053.3 325.7 0.1 722.7 4.8Women15-19 425.4 142.1 132.4 9.7 33.4 283.3 277.9 2.0 1.7 0.9 0.920-24 334.8 192.1 183.9 8.2 57.4 142.7 31.3 101.0 7.8 2.1 0.525-29 337.3 229.4 220.7 8.7 68.0 107.9 1.8 89.4 13.2 3.0 0.430-34 334.8 283.0 275.7 7.4 84.5 51.8 35.5 11.3 4.6 0.435-39 400.0 365.8 358.9 6.9 91.4 34.2 16.0 9.9 7.9 0.440-44 420.6 395.3 389.2 6.2 94.0 25.2 4.6 8.0 12.3 0.345-49 345.0 322.2 318.0 4.2 93.4 22.8 0.2 6.0 16.4 0.250-54 269.9 231.3 229.2 2.2 85.7 38.6 4.8 33.6 0.255-59 272.2 84.6 84.4 0.2 31.1 187.6 4.2 183.3 0.160-64 293.4 47.4 47.4 16.2 246.0 5.3 240.5 0.154+ 812.4 40.4 40.4 5.0 772.1 13.4 758.3 0.4Total 15+ 4245.9 2333.8 2280.2 53.6 55.0 1912.1 311.0 248.7 85.6 1262.9 3.9

Source: Population census of the Czechoslovak Republic; figures adjusted for additional child care leave

66

Table 03bLabour Force Participation (in thousands): Czech Republic - 4th quarter

Age group Population Economically active population Participation Economically inactive population

aged 15+ Total Employed Unemployed in % TotalStudents,

apprenticesadd.childcare leave

inhousehold pensioners others

Total15-19 910.6 340.2 300.4 39.8 37.4 570.4 534.9 2.0 9.1 5.8 18.620-24 727.3 501.3 482.8 28.5 68.9 226.0 81.6 79.0 44.0 7.1 14.325-29 701.3 563.8 535.8 28.0 80.4 137.5 5.1 70.0 47.2 5.6 9.630-34 638.4 574.0 551.1 22.9 89.9 64.4 0.1 27.0 20.9 9.5 6.935-39 774.7 724.3 706.6 17.7 93.5 50.4 12.0 13.6 16.7 8.140-44 826.0 771.7 749.2 22.5 93.4 54.3 3.8 10.4 32.1 8.045-49 770.4 716.0 701.1 14.9 92.9 54.4 5.3 42.7 6.450-54 570.4 475.6 467.2 8.4 83.4 94.8 4.2 85.7 4.955-59 487.5 232.4 227.2 5.2 47.7 255.1 4.9 241.1 9.160-64 526.6 100.7 95.1 5.6 19.1 425.9 6.0 408.8 11.165+ 1328.8 78.6 76.4 2.2 5.9 1250.2 8.4 1225.8 16.0Total 15+ 8262.0 5078.6 4882.9 195.7 61.5 3183.4 621.7 193.8 174.0 2080.9 113.0

Men15-19 465.3 175.0 155.4 19.6 37.6 290.3 275.7 0.1 3.8 10.720-24 371.9 316.9 301.5 15.4 85.2 55.0 43.1 0.9 3.1 7.925-29 358.2 347.7 339.5 8.2 97.1 10.5 3.4 0.4 3.3 3.430-34 324.4 317.5 308.4 9.1 97.9 6.9 0.5 4.2 2.235-39 390.8 379.5 372.0 7.5 97.1 11.3 7.8 3.540-44 414.1 398.0 390.2 7.8 96.1 16.1 0.3 13.7 2.145-49 382.2 259.3 352.8 6.5 94.0 22.9 20.1 2.850-54 278.7 245.3 241.7 3.6 88.0 33.4 0.4 30.7 2.355-59 231.3 164.4 161.6 2.8 71.1 66.9 62.9 4.060-64 239.5 65.5 62.0 3.5 27.3 174.0 0.3 167.4 6.365+ 500.3 46.8 45.2 1.6 9.4 453.5 1.9 442.4 9.2Total 15+ 3956.7 2815.9 2730.3 85.6 71.2 1140.8 322.2 4.8 759.4 54.4

Women15-19 445.3 165.2 145.0 20.2 37.1 280.1 259.2 2.0 9.0 2.0 7.920-24 355.4 184.4 171.3 13.1 51.9 171.0 38.5 79.0 43.1 4.0 6.425-29 343.1 216.1 196.3 19.8 63.0 127.0 1.7 70.0 46.8 2.3 6.230-34 314.0 256.5 242.7 13.8 81.7 57.5 0.1 27.0 20.4 5.3 4.735-39 383.9 344.8 334.6 10.2 89.8 39.1 12.0 13.6 8.9 4.640-44 411.9 373.7 359.0 14.7 90.7 38.2 3.8 10.1 18.4 5.945-49 388.2 356.7 348.3 8.4 91.9 31.5 5.3 22.6 3.650-54 291.7 230.3 225.5 4.8 79.0 61.4 3.8 55.0 2.655-59 256.2 68.0 65.6 2.4 188.2 4.9 178.2 5.160-64 287.1 35.2 33.1 2.1 12.3 251.9 5.7 241.4 4.865+ 828.5 31.8 31.2 0.6 3.8 796.7 6.5 783.4 6.8Total 15+ 4305.3 2262.7 2152.6 110.1 52.6 2042.6 299.5 193.8 169.2 1321.5 58.6

Source: Labour Force Survey, Czech statistical Office; figures adjusted for additional child care leave

67

Table 03c

Labour Force Participation (in thousands): Czech Republic - 4th quarter 1996

Age group Population Economically active population Participation Economically inactive population

aged 15+ Total Employed Unemployed in % TotalStudents,

apprenticesadd.child care leave

in household pensioners others

Total15-19 822.9 210.3 183.8 26.4 25.6 612.6 589.9 0.8 5.7 3.2 12.920-24 896.3 640.0 612.5 27.5 71.4 256.3 123.9 56.9 53.5 6.3 15.825-29 690.0 545.1 520.3 24.8 79.0 145.0 7.7 62.8 56.4 5.7 12.530-34 702.0 612.1 589.5 22.6 87.2 89.9 0.5 32.4 37.3 9.1 10.635-39 658.6 604.6 586.2 18.4 91.8 54.0 0.3 12.6 18.7 12.0 10.340-44 795.1 745.7 726.9 18.9 93.8 49.4 0.2 3.2 11.7 21.3 12.945-49 851.6 786.7 767.2 19.5 92.4 65.0 - 0.1 8.6 38.8 17.450-54 674.4 574.5 562.4 12.2 85.2 99.8 - 0.1 6.3 70.2 23.255-59 515.7 284.6 277.8 6.7 55.2 231.2 0.2 - 3.7 211.4 15.960-64 470.5 102.8 96.5 6.3 21.9 367.6 0.9 - 4.0 345.0 17.865+ 1385.0 74.8 72.1 2.7 5.4 1310.2 1.3 - 4.3 1285.4 19.2Total 15+ 8462.1 5181.1 4995.1 186.1 61.2 3281.0 724.9 168.9 210.2 2008.5 168.6

Men15-19 421.7 119.5 107.4 12.1 28.3 302.2 293.1 - - 1.9 7.120-24 457.3 385.1 369.4 15.7 84.2 72.2 64.4 0.1 0.3 1.9 5.525-29 352.5 339.3 330.7 8.6 96.3 13.1 4.1 0.4 0.3 3.4 4.930-34 357.7 348.7 341.1 7.5 97.5 9.1 0.2 0.2 0.6 5.2 2.835-39 333.8 322.1 314.7 7.4 96.5 11.6 0.1 0.4 0.8 6.4 3.940-44 398.7 384.5 376.6 7.9 96.5 14.2 - - - 9.3 4.945-49 424.9 399.1 389.7 9.4 93.9 25.8 - - 0.5 19.0 6.350-54 329.6 294.8 289.7 5.1 89.5 34.7 - - 0.1 26.2 8.455-59 246.8 191.3 187.1 4.2 77.5 55.5 0.2 - 0.2 47.2 7.860-64 216.0 67.3 63.6 3.7 31.1 148.8 0.3 - 0.4 138.8 9.265+ 527.0 46.5 44.8 1.8 8.8 480.5 0.7 - 0.5 470.8 8.6Total 15+ 4065.9 2898.3 2814.8 83.4 71.3 1167.6 363.2 1.0 3.7 730.2 69.5

Women15-19 401.2 90.8 76.5 14.3 22.6 310.4 296.8 0.8 5.7 1.3 5.820-24 439.0 254.9 243.0 11.9 58.1 184.2 59.4 56.9 53.2 4.4 10.225-29 337.6 205.7 189.5 16.2 60.9 131.8 3.5 62.4 56.0 2.3 7.630-34 344.3 263.5 248.4 15.1 76.5 80.8 0.2 32.2 36.7 3.9 7.835-39 324.8 282.4 271.5 11.0 87.0 42.3 0.2 12.2 17.9 5.6 6.440-44 396.4 361.2 350.3 10.9 91.1 35.2 0.2 3.2 11.7 12.1 8.045-49 426.8 387.6 377.5 10.1 90.8 39.2 - 0.1 8.1 19.8 11.150-54 344.8 279.7 272.6 7.1 81.1 65.1 - 0.1 6.2 44.0 14.855-59 269.0 93.3 90.7 2.5 34.7 175.7 - - 3.5 164.2 8.160-64 254.4 35.5 33.0 2.6 14.0 218.9 0.6 - 3.5 206.2 8.565+ 857.9 28.3 27.3 0.9 3.3 829.7 0.6 - 3.9 814.6 10.6Total 15+ 4396.2 2282.9 2180.2 102.6 51.9 2113.3 361.7 167.8 206.5 1278.3 99.1

Source: Labour Force Survey, Czech Statistical Office;

68

Table 04

HIGHEST EDUCATIONAL ATTAINMENT OF THE POPULATION AT

THE AGE OVER 15 YEARS

Highest Educational attainment 1970 1980 1991 91/70 v %

Primary and without school education /1 4,108,975 3,531,795 2,723,843 66.3

Secondary without maturita /2 3,922,055 4,558,721 2,878,645 73.4

Secondary technical with maturita /2 783,825 1,070,150 1,524,477 194.5

Secondary general with maturita /2 260,111 278,303 342,506 131.7

Tertiary /3 263,127 393,524 582,849 221.5

Not identified 59,942 49,794 85,459 142.6

Total 9,398,035 9,882,287 8,137,779 86.6

HIGHEST EDUCATIONAL ATTAINMENT OF THE POPULATION AT

THE AGE OVER 15 YEARS IN %

Highest Educational attainment 1970 1980 1991 91-70

Primary and without school education /1 43.7 35.7 33.5 -10.3

Secondary without maturita /2 41.7 46.1 35.4 -6.4

Secondary technical with maturita /2 8.3 10.8 18.7 10.4

Secondary general with maturita /2 2.8 2.8 4.2 1.4

Tertiary /3 2.8 4.0 7.2 4.4

Not identified 0.6 0.5 1.1 0.4

Total 100.0 100.0 100.0 0.0

Note:

/1 ISCED 1,2 , incl. not completed

/2 ISCED 3

/3 ISCED 5-7

Source: Population census in corresponding years

69

Table 05RELATIVE INCOME OF PERSONS AGED 25-64 WITH

INCOME FROM EMPLOYMENT (SECONDARY

EDUCATION =100) BY EDUCATION LEVEL AND

GENDER -1993

Education Men WomenPrimary 49 35Secondary (incl. vocat.) 100 100Tertiary 135 210

Source: Datamodel based on Microcensus 1993 - ing. J. Dlouhy, MPSV

Table 06

ANNUAL AVERAGE INCOME OF WOMEN AS

PERCENTAGE OF ANNUAL AVERAGE INCOME

OF MEN AGED 25-64 BY EDUCATION LEVEL

Education WomenPrimary 35Secondary (inc, vocat. 49Tertiary 76Total 43

Source: Datamodel based on Microcensus 1993 - ing. J. Dlouhý, MPSV

70

Table 07

STRUCTURE OF THE YOUNG BY ECONOMIC ACTIVITY AND INACTIVITY RATE BY REASONS

IN % (THE YOUNG OF CORRESPONDING AGE GROUP =100)

Year Total Men WomenEconomic. Not economically active Economic. Not economically active Economic. Not economically active

active Total In educat. ACCL Other active Total In educat. ACCL Other active Total In educat. ACCL Other15-19 years

1991 34.4 65.6 64.7 0.2 0.9 35.4 64.6 64.1 - 0.5 33.4 66.6 65.3 0.5 0.81993 37.4 62.6 58.7 0.2 3.7 37.6 62.4 60.4 - 2.0 37.1 62.9 58.2 0.5 4.21996 25.6 74.4 71.7 0.1 2.6 28.3 71.7 69.5 - 2.2 22.6 77.4 74.0 0.2 3.2

20-24 years1991 73.2 26.8 10.0 14.7 2.1 88.3 11.7 10.7 - 1.0 57.4 42.6 9.3 30.2 3.11993 68.9 31.1 11.2 10.9 9.0 85.2 14.8 11.6 - 3.2 51.9 48.1 10.8 22.2 15.11996 71.4 28.6 13.8 6.3 8.5 84.2 15.8 14.1 - 1.7 58.1 41.9 13.5 12.9 15.5

25-29 years1991 83.3 16.7 0.7 13.0 3.0 98.0 2.0 0.8 - 1.2 68.0 32.0 0.5 26.5 5.01993 80.4 19.6 0.7 10.0 8.9 97.1 2.9 0.9 - 2.0 63.0 37.0 0.5 20.4 16.11996 79.0 21.0 1.1 9.1 10.8 96.3 3.7 1.2 - 2.5 60.9 39.1 1.0 18.5 19.6

Note: ACCL = Additional child care leaveSource: ca lculation of author based on Population census - 1991, Labour Force Survey 1993 and 1996, Czech Statistical O ffice

71

Table 08

STRUCTURE OF YOUNG PEOPLE BY ECONOMIC

ACTIVITY AND INACTIVITY RATE BY AGE 1996 QUARTER 4 IN %

Age Economically Not economically activeactive /1 Total In Education Other /2

15 3.0 97.0 95.5 1.516 6.0 94.0 92.7 1.317 16.0 84.0 81.6 2.418 38.8 61.2 58.0 3.219 56.2 43.8 38.9 4.920 68.8 32.0 22.9 9.121 70.0 30.0 17.2 12.822 70.0 30.0 12.5 17.523 75.1 24.9 9.2 15.724 75.3 24.7 4.6 20.1

1/ including armed forces and economic activity of daily students2/ mainly cases of additional child-care leave or their taking care of family

Source: Labour Force Survey, Czech Statistical Office

72

Table 09

Structure of young people by study and economical status

(in limited form - first two lines of years 1993 and 1996 +

international comparison )

in % (total number of the young of the corresponding age group = 100)

Years In education Not in educationIn employment Not in employment In employment Not in employment

1993Total 15-29 years 2.0 26.8 53.9 17.3Age group15-19 4.5 59.2 28.5 7.820-24 1.0 11.3 64.0 23.725-29 0.0 0.7 76.4 22.9

1996Total 15-29 years 1.2 30.0 53.5 15.3Age group15-19 2.4 71.8 19.9 5.920-24 0.9 13.9 67.4 17.825-29 0.0 1.1 75.4 23.5

International comparison:Average of 15 members country OECD, 1994:16-19 16.0 59.0 13.0 12.0

Czech Republic, 1993:15-19 5.0 59.0 28.0 8.0

Source: Labour Force Survey (special outputs) Czech Statistical Office, bases OECD

73

Table 10THE SHARE OF YOUNG PEOPLE WITH BASIC EDUCATION

NOT CONTINUING IN FURTHER EDUCATION AND THEIR

STRUCTURE

The young 15-29 The share of total Structure 1996 /1number of the young Employment Unemployment Economically

1993 1996 not active

Total 15-29 years 6.6 5.9 52.0 14.0 34.0Age group15-19 5.7 4.7 51.4 23.6 25.020-24 6.3 6.4 54.2 8.5 37.325-29 8.1 6.8 49.9 12.7 37.4

Men 15-29 years 5.9 5.3 68.3 15.4 16.3Age group15-19 6.8 4.8 58.2 20.3 21.520-24 5.3 5.6 77.4 12.3 10.325-29 6.5 5.5 66.6 14.4 19.0

Women 15-29 years 7.3 6.6 38.5 12.8 48.7Age group15-19 5.4 4.7 44.0 27.2 28.820-24 7.2 7.3 35.5 5.4 59.125-29 9.7 8.2 38.2 11.5 50.3

Note: /1 employment incl. armed forces, not economically active incl. additional child-care leave (up to 3-4 age of child)Source: Labour force survey (special outputs), Czech Statistical Office

74

Table 11

Participation of the corresponding population in secondary and tertiary

education in day form of study

Participation in education 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97*)

Secondary 82.5 75.7 73.7 76.0 79.6 90.5 56.2

Tertiary 14.5 14.0 15.1 15.6 16.2 16.7 24.9

*) The change in form of compulsory school attendance

Source: calculation based on data Statistical Yearbook of System of Education, Institute for Information in

Education, age structure of population, Czech Statistical Office

75

Table12

Change of the structure of study by type of secondary school in %

1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 /2DS ES DS ES DS ES DS ES DS ES DS ES DS ES

Accepted students 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Gymnasium 16.7 0.9 17.3 2.3 17.1 4.7 16.6 6.6 17.6 8.5 14.7 1.1 58.7 5.4Secondary technical school 23.5 20.1 28.6 84.3 28.8 68.0 31.2 71.0 35.9 72.1 38.5 28.3 18.0 81.4Secondary vocational schools 59.9 79.0 54.1 13.4 54.2 27.3 52.2 22.4 46.4 19.4 46.8 70.6 23.3 13.2Number of students 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Gymnasium 20.2 1.3 20.0 3.4 21.0 4.6 21.1 7.5 21.4 10.0 20.6 2.2 33.6 8.1Secondary technical school 27.9 41.1 30.8 79.7 31.3 76.3 32.7 74.5 35.3 73.6 38.4 32.3 37.0 80.2Secondary vocational schools 51.9 57.5 49.2 16.9 47.8 19.1 46.1 18.0 43.3 16.4 40.9 65.4 29.4 11.7School leavers /1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Gymnasium 16.3 0.9 14.6 2.1 15.4 2.1 16.8 2.7 18.0 5.3 14.0 2.3 20.4 12.6Secondary technical school inc. conservatoire 20.0 35.4 22.0 77.5 23.0 76.7 26.3 76.2 27.9 69.3 29.2 29.4 26.4 52.3Secondary vocational schools 63.6 63.7 63.4 20.4 61.6 21.2 56.9 21.1 54.1 25.4 56.8 68.3 53.2 35.1

Change of structure of study at secondary schools by time in %

1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97DS ES DS ES DS ES DS ES DS ES DS ES DS ES

Accepted students 100.0 100.0 97.8 30.5 112.0 16.5 115.2 14.5 111.3 16.8 119.5 127.4 17.0 21.2Gymnasium 100.0 100.0 101.6 79.3 114.6 88.4 114.9 110.4 117.6 164.0 105.0 153.7 59.9 129.9Secondary technical school 100.0 100.0 119.1 127.9 137.4 55.7 153.2 51.3 170.5 60.3 196.2 179.3 13.1 85.6Secondary vocational schools 100.0 100.0 88.5 5.2 101.4 5.7 100.4 4.1 86.3 4.1 93.5 113.9 6.6 3.5Numbers of students 100.0 100.0 96.9 32.0 95.8 23.7 98.6 17.5 101.7 16.6 110.0 90.3 62.9 19.2Gymnasium 100.0 100.0 96.1 81.8 99.5 82.0 103.2 99.7 107.7 125.0 112.5 153.2 104.8 118.2Secondary technical school 100.0 100.0 106.8 62.0 107.2 44.0 115.5 31.7 128.5 29.6 151.2 71.0 83.2 37.5Secondary vocational schools 100.0 100.0 91.9 9.4 88.2 7.9 87.7 5.5 84.9 4.7 86.8 102.8 35.7 3.9School leavers /1 100.0 100.0 114.5 33.8 115.3 28.1 105.1 19.2 98.2 11.6 98.4 50.6 70.6 6.2Gymnasium 100.0 100.0 102.3 76.9 108.9 65.4 108.1 56.4 108.5 67.3 84.4 126.9 88.2 85.3Secondary technical school inc. conservatoire 100.0 100.0 125.9 74.1 132.5 60.8 138.3 41.4 136.7 22.8 143.5 42.0 93.2 9.1Secondary vocational schools 100.0 100.0 114.0 10.8 111.6 9.4 93.9 6.4 83.5 4.6 87.7 54.3 59.0 3.4Follow-up coursesAccepted students 0 0 100.0 100.0 101.2 112.6 53.0 121.1 565.4 104.6 1007.7 186.1 951.9 123.7Number of students 0 0 100.0 100.0 137.1 168.2 90.7 188.1 697.5 154.2 1571.1 298.6 1412.9 179.4School leavers 0 0 100.0 100.0 15.5 54.2 13.3 43.5 87.5 32.5 139.3 80.1 284.4 39.4Tertiary (higher professional school )Accepted students 100.0 100.0 46.5 106.6 40.9 98.4 25.9 92.9 83.1 92.0 64.4 1.6 5.6 0.1Number of students 100.0 100.0 11.8 25.5 17.9 25.3 12.0 26.5 88.7 21.1 137.6 3.3 77.6 1.0School leavers 100.0 100.0 29.4 26.9 23.5 27.4 16.3 26.5 19.1 27.0 42.2 1.1 54.5 1.1DS = Day study; ES = Evening study/1 - School leavers are calculated from previous year/2 - Data are not comparable to previous years (change in length of compulsory education at basic school)Source: Statistical Yearbook of Education, Institute for Information in Education

76

Table 13Trends in number of first class students at Secondary vocational

and technical schools and vocational schools

1989 1991 1992 1993 1994 1995

Branches number % number % number % number % number % number %

Living environment 24 108 181 226

Mining 2191 100.0 140 6.4 222 10.1 117 5.3 82 3.7 80 3.7

Metallurgy 762 100.0 345 45.3 301 39.5 195 25.6 158 20.7 119 15.6

Engineering 35890 100.0 29040 80.9 26674 74.3 22090 61.6 19836 55.3 17091 47.6

Electrical engineering 14921 100.0 11284 75.6 12693 85.1 12196 81.7 12378 83.0 11885 79.7

Silicon technical chemistry 1306 100.0 1321 101.2 1555 119.1 1080 82.7 990 75.8 900 68.9

Nonsilicon technical chemistry 3397 100.0 2119 62.4 1388 40.9 1521 44.8 1199 35.3 794 23.4

Food industry 3130 100.0 2963 94.7 4668 149.1 4308 137.6 3663 117.0 3111 99.4

Manufacture of textiles 9797 100.0 7306 74.6 8106 82.7 7939 81.0 7281 74.3 5439 55.5

Manufacture of leather 1850 100.0 1272 68.8 1063 57.5 1086 58.7 615 33.2 329 17.8

Wood industry 3586 100.0 3870 107.9 4911 137.0 5561 155.1 5311 148.1 5033 140.4

Polygraph 681 100.0 315 46.3 316 46.4 411 60.4 445 65.4 392 57.6

Construction 14721 100.0 13579 92.2 14385 97.7 14294 97.1 12121 82.3 10471 71.1

Mail transport 3389 100.0 2550 75.2 2550 75.2 2603 76.8 2790 82.3 2633 77.7

Special branches 118

Agriculture and forestry 10595 100.0 8903 84.0 9085 85.8 9623 90.8 8801 83.1 7100 67.0

Vet medicine 197 100.0 183 92.9 186 94.4 187 94.9 198 100.5 172 87.3

Health 6841 100.0 5869 85.8 5470 80.0 4837 70.7 4474 65.4 4771 69.7

Economy, trade, services 33031 100.0 32468 98.3 48806 147.8 55088 166.8 54950 166.4 49351 149.4

Law science 75 337 456 387

Library 184 100.0 103 56.0 155 84.2 503 273.4 171 92.9 185 100.5

Teaching 1654 100.0 1007 60.9 943 57.0 956 57.8 1021 61.7 1057 63.9

Arts 970 100.0 1114 114.9 1004 103.5 1155 119.1 1598 164.7 1611 166.1

Other first classes 191 63 1135

Total 149093 100.0 125751 84.3 144584 97.0 146526 98.3 138786 93.1 124392 83.4

There are not included in data students of the follow-up courses for school leavers from 3-years vocational schools,

follow-up courses, higher professional schools, evening study and students of special schools

When measuring decrease of number of students in each branch of groups in comparison with year 1989

is necessary to consider also decrease of the total number of students occurred by demographic evolution (see "Total").

Data related to 30 Sept of the corresp. year, percentage indicate the share of number of students in particular group

of branches to year 1989

Source: Statistics of Ministry of Education, Institute for Information in Education

77

Table 14

Students of the tertiary day and evening study at 1995/96 by branches

Day study Evening study Total Total

Master's Bachelor's Master's Bachelor's Master's Bachelor's Master's +

study study study study study study Bachelor's

Arts, theology 9,792 2,336 1,781 2,294 11,573 4,630 16,203

Law sciences 6,488 96 92 - 6,580 96 6,676

Natural sciences, Mathematics 6,084 1,249 66 274 6,150 1,523 7,673

Medical, Pharmacy 8,623 806 - 374 8,623 1,180 9,803

Economy, Management 7,007 13,795 268 1,618 7,275 15,413 22,688

Technical branches 29,936 6,422 1,677 475 31,613 6,897 38,510

Agriculture, Vet medical 7,232 725 490 - 7,722 725 8,447

Teaching 17,734 2,115 2,706 991 20,440 3,106 23,546

Fine arts 2,330 690 169 154 2,499 844 3,343

Total 95,266 28,234 7,249 6,180 102,475 34,414 136,889

Day study Evening study Total Total

Master's Bachelor's Master's Bachelor's Master's Bachelor's Master's +

study study study study study study Bachelor's

Arts, theology 10.3% 8.3% 24.6% 37.1% 11.3% 13.5% 11.8%

Law sciences 6.8% 0.3% 1.3% 0.0% 6.4% 0.3% 4.9%

Natural sciences, Mathematics 6.4% 4.4% 0.9% 4.4% 6.0% 4.4% 5.6%

Medical, Pharmacy 9.1% 2.9% 0.0% 6.1% 8.4% 3.4% 7.2%

Economy, Management 7.4% 48.9% 3.7% 26.2% 7.1% 44.8% 16.6%

Technical branches 31.4% 22.8% 23.1% 7.7% 30.9% 20.0% 28.1%

Agriculture, Vet medical 7.6% 2.6% 6.8% 0.0% 7.5% 2.1% 6.2%

Teaching 18.6% 7.5% 37.3% 16.0% 20.0% 9.0% 17.2%

Fine arts 2.5% 2.4% 2.3% 2.5% 2.4% 2.5% 2.4%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Source: Statistics of Ministry of Education, Institute for Information in Education

78

Table 15

Education mobility father/son in three generation changis in %

Education Basic Secondary Secondary University TotalSon Father Vocational

Basic A 84.5 12.2 2.3 1.2 30.8B 65.5 21.8 12.7 - 17.7C 55.8 42 2.2 - 10.2

Secondary Vocational A 53.5 43.9 1.9 0.7 41.6B 35.4 53.3 8.2 3.1 46.1C 28.3 54.9 14.6 2.2 52

Secondary with maturita A 38.8 44.4 12.4 4.5 16.3B 28.3 50.1 16 5.7 22.9C 12.4 44.8 33.4 9.4 22.7

University A 40 38.4 13.2 8.4 11.3B 22 33.3 31.6 13.1 13.4C 7.5 21.2 46.4 24.8 15.1

Total A 59.1 33.6 5 2.3B 37.3 44.3 13.9 4.5C 24.4 46.2 22.4 7

A - Men born between 1923-1935B - Men born between 1936-1950C - Men born after 1950

Source: P. Machonin, M. Tucek &, Czech Society in Transition (Ceska spolecnost v transformaci), published

79

Table 16

Population age structure evolution in years 1991, 1993, 1995, projection through year 2000 (by 31 Dec)

Age group 1991 1993 1995 2000 1991 1993 1995 2000 1995-1991 2000-1995thousands structure in % +- in thous. 1991=100 +- in thous. 1995=100

PopulationTotal 10313.0 10334.0 10321.0 10272.0 100.0 100.0 100.0 100.0 8.8 100.1 -49.4 99.50-14 2121.0 2010.0 1893.0 1688.0 20.6 19.4 18.3 16.4 -227.5 89.3 -204.8 89.215-59 6347.0 6466.0 6571.0 6706.0 61.5 62.6 63.7 65.3 +224.4 103.5 +135.3 102.160+ 1845.0 1858.0 1857.0 1878.0 17.9 18.0 18.0 18.3 +11.9 100.6 +20.1 101.1Working age15-19 893.0 909.0 852.0 682.0 8.7 8.8 8.3 6.6 -41.6 95.3 -169.4 80.120-24 699.0 770.0 863.0 854.0 6.8 7.5 8.4 8.3 +163.9 123.4 -8.9 99.025-29 696.0 691.0 687.0 866.0 6.7 6.7 6.7 8.4 -9.4 98.7 +179.7 126.230-59 4059.0 4096.0 4169.0 4304.0 39.3 39.6 40.3 42.0 +111.5 102.7 +133.9 103.2MenTotal 5006.0 5019.0 5016.0 5003.0 100.0 100.0 100.0 100.0 +10.5 100.2 -13.3 99.70-14 1086.0 1030.0 970.0 866.0 21.7 20.5 19.3 17.3 -116.2 89.3 -104.0 89.315-59 3185.0 3247.0 3303.0 3376.0 63.6 64.7 65.9 67.5 +118.6 103.7 +72.5 102.260+ 735.0 742.0 743.0 761.0 14.7 14.8 14.8 15.2 +8.1 101.1 +18.2 102.5Working age15-19 457.0 464.0 436.0 349.0 9.1 9.2 8.7 7.0 -20.9 95.4 -87.0 80.020-24 357.0 394.0 441.0 436.0 7.1 7.9 8.8 8.7 +83.2 123.3 -4.4 99.025-29 355.0 353.0 350.0 442.0 7.1 7.0 7.0 8.8 -4.5 98.7 +91.1 126.030-59 2016.0 2036.0 2076.0 2149.0 40.3 40.6 41.4 43.0 +60.8 103.0 +72.8 103.5WomenTotal 5307.0 5315.0 5305.0 5269.0 100.0 100.0 100.0 100.0 -1.7 100.0 -36.1 99.30-14 1035.0 980.0 923.0 822.0 19.5 18.4 17.4 15.6 -111.3 89.2 -100.8 89.115-59 3162.0 3219.0 3268.0 3330.0 59.6 60.6 61.6 63.2 +105.9 103.3 +62.8 101.960+ 1110.0 1116.0 1114.0 1117.0 20.9 21.0 21.0 21.2 +3.7 100.3 +1.9 100.2Working age15-19 436.0 445.0 416.0 333.0 8.2 8.4 7.8 6.3 -20.7 95.3 -82.4 80.220-24 342.0 376.0 422.0 418.0 6.4 7.1 8.0 7.9 +80.7 123.6 -4.2 99.025-29 341.0 338.0 337.0 424.0 6.4 6.4 6.3 8.1 -4.9 98.6 +88.6 126.430-59 2043.0 2060.0 2093.0 2155.0 38.6 38.7 39.5 40.9 +50.8 102.4 +60.8 103.0

Source: Statistical Yearbook, Czech Republic, demographic projection of population (Czech Statistical Office 1995)

80

Table 17Population demographical evolution and projection for secondary and high schools and university

Mid-year population Projection related to 31 Dec including migrationAge 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2005

14 years 188796 185610 179588 175511 170907 159190 145800 138587 134569 134040 133476 128336 12872015 years 183617 188721 184509 179564 175577 170964 159276 141126 138617 134602 134072 130697 12804716 years 168682 183534 187831 184449 179575 175598 171017 150529 141151 138644 134631 133539 12623117 years 155182 168586 182197 187740 184450 179579 175612 167968 150538 141166 138660 134121 13009218 years 147533 155103 167774 182113 187738 184446 179592 174034 167996 150577 141210 134698 12848119 years 141924 147501 155179 169719 182103 187696 184462 177264 174094 168060 150653 138793 13089520 years 136250 141983 147558 155275 167839 182125 187754 182141 177349 174182 168154 141407 13382421 years 133695 136352 141400 149712 155396 167900 182205 187083 182260 177472 174309 150905 13454122 years 135377 133815 135283 141626 147912 155527 168045 188771 187222 182403 177620 168442 13524923 years 139703 135492 132592 135440 141839 148048 155686 176081 188917 187369 182555 174619 13943524 years 146374 139768 134054 132761 135616 141968 148244 160491 176225 189052 187507 177922 14210125 years 147493 146433 147558 134157 132908 135764 142159 151315 160629 176351 189169 182819 15157026 years 137480 147463 141400 138322 134267 132999 135944 145507 151437 160744 176453 187720 16900827 years 129145 137410 135283 144801 138413 134368 133155 139097 145616 151542 160842 189335 17509428 years 127400 129066 132592 145523 144881 138525 134510 133016 139205 145720 151641 176616 17831929 years 126308 127282 134054 135586 145604 144976 138660 133544 133117 139303 145813 161014 183142

Age groups corresponding to particular educational levels14-17 696277 726451 734125 727264 710509 685331 65170518-22 694779 714754 747194 798445 840988 877694 90205815-18 685497 633661 598314 565010 548609 54101819-23 911340 909842 889486 853291 774166 673944

Source: Population age structure by age units during years 1961-1994Populationprojection of Czech Republic up to year 2020, Czech Statistical Office, 1995

81

Table 18

Employment trends by sector

1990 1993 1995Number of employed persons (in thousands) 5381.1 4773.9 4939.7

Structure per sector (in %)

Primary 11.4 6.8 6.0

Secondary 45.9 44.3 41.5

Tertiary 42.6 49.1 52.5

Source: Employment and Unemployment Analysis of Trends,

Ministry of Labour and Social Affairs

83

Table 19

Employment structure by branch related to 31 Decby sector (persons) total

Branch of activity by NACE, rev.1 1990 1993 1995 1993/1990 1995/1993Total Total Total index in % index in %

Total in thousands 5387.1 4773.9 4939.0 88.6 103.5in % 100.0 100.0 100.0including in %Agriculture, hunting, forestry,fishing 11.4 6.8 6.0 53.1 91.1Total industry 38.1 34.9 32.7 81.1 97.1including: mining and quarries 9.1 6.3 5.4 56.7 83.5

manufacturing 87.1 88.4 89.0 82.3 97.8Construction 7.8 9.4 8.8 105.7 97.5Trade, repair of motor veh. and personal and household goods 9.2 12.8 14.6 123.6 117.6Hotels and restaurants 1.7 2.4 2.8 121.0 123.9Transport, storage and communication 7.1 7.5 7.2 93.3 99.5Financial intermediation and insurance 0.6 1.4 1.7 230.6 121.8Real estate, renting and and business activities 7.1 6.4 7.6 79.3 123.5Public administration and defence; compulsory social security 2.0 3.0 3.4 128.2 118.2Education 6.0 6.8 6.6 100.4 100.7Health and social work 5.2 5.5 5.3 93.6 100.3Other community, social and personal services 3.7 3.3 3.3 77.5 103.4

Source: Time Series of Employment Statistics, Czech Statistical Office, 1996; calculation by autor

84

Table 20

Employees' age structure in business by size

Statistical sample up to 20 years 20-30 years 30-40 years 40-50 years 50-59 years 60 years and more Not identifiedNumber Number Number Number Number Number Number Number Number

Size category of organisations of persons of persons in % of persons in % of persons in % of persons in % of persons in % of persons in % of persons in %up to 24 employees 48 611 12 2 120 20 120 20 11 30 119 19 13 2 46 825 - 99 employees 142 8092 147 2 1589 20 1605 20 2260 28 1454 18 308 4 729 9100 - 499 employees 249 65024 960 1 10953 17 12392 19 18018 28 13647 21 2497 4 6557 10500 - 999 employees 108 76927 914 1 12400 16 14769 19 22379 29 15430 20 2037 3 8998 121000 - 2999 employees 107 172219 3404 2 31269 18 33097 19 48733 28 33632 20 4123 2 17961 103000 - 4999 employees 16 60809 1002 2 10596 17 12989 21 19380 32 12350 20 1014 2 3478 65000 and more employees 7 85323 879 1 18833 22 21645 25 26320 31 16893 20 679 1 74 0Total 677 469005 7318 2 85760 18 96617 21 137271 29 93525 20 10671 2 37843 8

Source: Sample Survey of Occupation of Labour Force by size category of business and age of employees, Trexima 1996.

85

Table 21

Number of employees and their average gross wages in 2nd quarter 1996by age groups and education

Employee education Total up to 19 years 20-29 years 30-39 years 40-49 years 50-59 years 60 years +The highest attained level 1 2 3 4 5 6 7Total employees 257442 4531 48355 56757 86452 55310 5947

wages,salaries 11620 7286 10284 11886 11944 12354 11707

Not completed basic schools employees 1531 37 239 302 528 330 95ISCED 1 wages,salaries 8123 6871 8048 8134 8286 8476 6630

Completed basic schools employees 21153 261 1567 3255 8934 6127 1009ISCED 2 wages,salaries 7994 6805 8281 8063 8066 8087 6428

Secondary vocational schools employees 90363 2400 18871 20295 30478 17088 1231ISCED 3 wages,salaries 9843 7039 9171 10051 10142 10303 8367

Secondary without maturita employees 6178 177 1204 1092 1871 1611 223ISCED 3 wages,salaries 9462 6972 8902 9404 9532 10233 8606

Secondary vocational school with maturita employees 10331 215 3901 2781 2108 1211 115ISCED 3 wages,salaries 11201 7496 10426 11715 11881 12128 9781

Gymnasium employees 8952 97 2361 1828 2765 1746 155ISCED 3 wages,salaries 11975 7519 11294 11806 12408 12766 10500

Secondary technical schools with maturita employees 50888 863 10438 11919 16693 10207 768incl. conservatories ISCED 3 wages,salaries 12342 8025 10606 11831 13100 13815 12682Higher professional schools (postmaturita) employees 1481 6 236 286 496 402 55

ISCED 5 wages,salaries 14240 10415 11350 13456 14035 16629 15526University employees 24675 3480 7300 7655 5178 1062

ISCED 6,7 wages,salaries 19935 14786 19147 21907 21677 19504Postgraduate employees 1308 46 200 434 423 205

ISCED 9 wages,salaries 22074 13494 19072 22253 24210 22145Not identified employees 40582 475 6012 7499 14580 10987 1029

wages,salaries 11563 7419 10945 11878 11518 11945 11359

Source: Employment statistics, Czech Statistical Office

86

Table 22

Percent share of graduates (school leavers) - job seekers in total graduates

related to 30 April corresponding year (1993-1996)

Educational Period out of which subject of study (apprenticeship)

attainment Total Natural sciences Technical Agriculture Medical & Economic, Arts

Environment sciences Forestry pharm. sciencesTrade & Services

protection vet. subject Health Social subj.

Secondary 4/1993 4.0 x 4.6 8.0 . 0.6 33.3

Vocational 4/1994 4.6 x 3.9 6.9 . 3.7 17.5

school without 4/1995 4.2 x 3.9 7.0 . 4.1 14.5

Maturita 4/1996 4.6 x 4.2 8.0 . 4.6 11.3

Secondary 4/1993 5.3 x 6.2 4.0 . 0.1 4.1

vocational 4/1994 2.5 x 2.3 4.0 . 2.8 1.2

school with 4/1995 2.6 x 2.5 4.2 . 2.8 0.6

Maturita 4/1996 4.4 x 3.4 5.9 . 8.4 4.2

Secondary 4/1993 7.2 x 7.5 7.7 . 6.1 3.8

technical 4/1994 3.4 44.0 3.8 4.8 . 2.1 1.3

school with 4/1995 2.6 18.8 3.3 3.6 1.9 1.8 1.4

Maturita 4/1996 2.9 18.2 3.7 4.2 1.1 2.7 2.2

Gymnasium 4/1993 3.4 x x x x x x

4/1994 3.2 x x x x x x

4/1995 2.7 x x x x x x

4/1996 2.8 x x x x x x

University 4/1993 9.3 15.7 10.3 15.7 11.1 5.6 13.7

4/1994 1.9 3.6 1.8 3.2 2.5 1.4 1.0

4/1995 1.4 1.6 1.3 3.3 1.3 1.2 0.8

4/1996 1.5 1.2 1.4 3.0 2.4 1.2 0.6

Note: These are only rough specifications of the study subjects, as on each level and school the main study subjects are named differently

Source: Calculations by Ministry of Education based on statistics of Ministry of Labour and Social Affairs

87

Table 23

Unemployment on the labour market in the Czech Republic by region

number of registered job seekers at Public Employment Services related to 31 Dec 1996

Capital Mid South West North East South NorthTotal Prague Bohemian Bohemian Bohemian Bohemian Bohemian Moravian Moravian

Total of unemployed job seekers 186339 2710 17077 9221 12138 35378 18729 35503 55583of which women 105100 1577 10435 5551 6829 20005 11304 19987 29412of which job seekers up to 19 years 24139 225 2302 1048 1551 5136 2074 4138 7665Long-term unemployedjob seekers over 6 months 66066 543 6190 2726 4036 14793 5923 11647 20208job seekers over 12 months 37562 214 3355 1403 2242 9078 3130 6190 11950Job seekers with basic education(including not completed) 70535 723 6611 3075 5443 17059 6223 11007 20394Handicapped persons 31455 718 3083 1730 2054 5196 3009 6950 8715Total of graduates 27178 335 2446 1358 1713 5003 2475 5270 8578Unemployment rate in % 3.52 0.43 2.98 2.52 2.66 5.84 2.93 3.45 5.60

the share in %Total of unemployed job seekers 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00of which women 56.40 58.19 61.11 60.20 56.26 56.55 60.36 56.30 52.92of which job seekers up to 19 years 12.95 8.30 13.48 11.37 12.78 14.52 11.07 11.66 13.79Long-term unemployedjob seekers over 6 months 35.45 20.04 36.25 29.56 33.25 41.81 31.62 32.81 36.36job seekers over 12 months 20.16 7.90 19.65 15.22 18.47 25.66 16.71 17.44 21.50Job seekers with basic education(including not completed) 37.85 26.68 38.71 33.35 44.84 48.22 33.23 31.00 36.69Handicapped persons 16.88 26.49 18.05 18.76 16.92 14.69 16.07 19.58 15.68Total of graduates 14.59 12.36 14.32 14.73 14.11 14.14 13.21 14.84 15.43

Source: Statistics of Ministry of Labour and Social Affairs

88

Table 24

Unemployment in critical groups at Czech Republic labour market

number of registered job seekers with Labour Offices related to 31 Dec of corresponding year

1990 1991 1992 1993 1994 1995 1996Total of unemployed job seekers 54429 221749 134788 185216 166480 153041 186339of which women 27641 127196 77684 103592 96632 88113 105100of which women aged 20-29 years x x 23627 31766 28977 24132 28066of which job seekers up to 19 years 8815 42092 23428 29138 22431 20399 24139Long-term unemployedjob seekers over 6 months x 65448 43071 56753 62226 60468 66066job seekers over 12 months x 8694 23037 27315 34678 36218 37562Job seekers with basic education(including not completed) 17416 72394 50967 69512 64519 61853 70535Handicapped persons 3583 17032 15502 20016 21618 22687 31455Graduates total 3505 24568 17435 23859 19997 20085 27178

Source: Statistics of Ministry of Labour and Social Affairs

89

Table 25

Structure of unemployed young people, graduates of basic schools and special basic schools

Unemployed young people up to 18 yearsNumber of young job seekers April 1994 September 1994 April 1995 September 1995 April 1995 September 1995

Total number of persons 5229 4648 4762 4550 5146 5015of which X X X X X X

girls 2454 2248 2303 2285 2399 2508 without work experience 3484 3665 3508 3400 3579 3603of which total young people up to 16 years 913 1133 698 912 724 1032of which X X X X X X

girls 435 560 342 444 340 560 without work experience 753 1057 644 824 590 876

Source: Ministry of Labour and Social Affairs statistics, Czech Republic

90

Table 26

Basic statistical overview of vacancies referred to Labour Offices (LO) by education and qualification structurenumber of registered job seekers at LO related to 31 Dec of corresponding year

Vacancies structure by 1990 1991 1992 1993 1994 1995 1996required education (structure in %)Vacancies total 57616 48402 79422 53938 76581 88047 83976Basic 35.8 23.8 19.5 16.0 18.4 21.7 24.3Secondary vocational school without Maturita 59.4 45.6 57.6 60.3 59.3 59.4 59.0Secondary technical school without maturita x 2.8 1.3 1.6 1.2 1.2 1.0Secondary vocational with maturita x 3.3 2.6 2.9 2.4 2.3 2.0Gymnasium x 1.3 1.6 1.4 1.2 0.9 0.6Secondary technical school with Maturitra 3.2 13.4 10.9 10.8 11.2 9.4 9.0Higher education 1.6 9.8 6.5 7.0 6.3 5.1 4.1Vacancies structure byISCO-88 (structure in %)Legislators, senior officials and managers x x x 1.2 0.8 0.6 0.7Professionals x x x 6.5 6.1 5.1 4.5Technicians and associate professionals x x x 11.6 11.1 9.9 8.2Clerks x x x 2.9 2.0 1.8 1.4Service workers and shop and market sales workers x x x 10.9 10.3 9.5 10.3Skilled agricultural and forestry workers x x x 2.7 2.2 2.6 2.5Craft and related trades workers x x x 45.6 46.0 46.6 46.2Plant and machine operators and assemblers x x x 9.9 11.8 12.4 12.9E lementary occupations x x x 8.6 9.6 11.5 13.2

x - data not available in given structureSource: Ministry of Labour and Social Affairs statistics

91

Table 27

Number of registered unemployed per vacancy

Educational attainment 1991 1992 1993 1994 1995 1996

Basic and without education 6.0 3.2 7.9 4.5 3.2 2.3Secondary vocational 3.9 1.1 2.3 1.4 1.1 1.0Secondary 5.0 2.2 4.0 2.6 2.4 3.4Tertiary 1.8 0.7 1.1 0.7 0.7 1.1

Total 4.4 1.7 3.4 2.1 1.7 1.6

Source: Data by Ministry of Labour and Social Affairs

93

Table 28

Active employment policy in the Czech Republicdata represent numbers of newly created vacancies and satisfied job seekers

by year and instruments including these activities' expenses

year 1991 year 1992 year 1993 year 1994 year 1995 year 1996Graduate vacanciescreated vacancies 18994 25996 8178 7025 5502 5094satisfied job seekers 14398 21907 7380 6853 5292 4971expenses related to 31 Dec (thous.CZK) 48000 325528 245190 127053 117754 100334Public utility jobcreated vacancies 42006 67793 9547 9436 5963 3612satisfied job seekers 33868 60370 12250 9874 6603 4025expenses related to 31 Dec (thous.CZK) 496800 968620 217855 241483 163636 102426Public utility workcreated vacancies 7721 29028 12095 13432 11446 9838satisfied job seekers 6165 25503 11760 12927 10821 10259expenses related to 31 Dec (thous.CZK) 78400 223027 159605 183740 189469 199069Retrainingnewly accepted 7967 17590 12095 14814 13454 12107leavers 3662 18435 12521 15167 14034 12133expenses related to 31 Dec (thous.CZK) 40000 97602 73359 103248 100091 91727Handicapped personscreated vacancies x 1415 1005 851 824 622satisfied job seekers x 1308 947 748 724 562expenses related to 31 Dec (thous.CZK) x 55699 *) 48667 *) 61630 *) 26510 17683

Note :*) including working expenses for sheltered workshops for the handicappedSource: Statistics of Ministry of Labour and Social Affairs

95

ANNEX 7:Graphs 1 - 4

97

1a

Proportions of students in population by single age at 31 . 12. 1990only "standard" students (without part-time study, distance study and other "non-standard" forms)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Population

5%

56%

70%

80%

95%

89%

60%

28%

17%

14%

13%

11%

CZECH

REPUBLIC

No te : See the methodological comments in the text.age

98

1b

Proportions of students in population by single age at 31 . 12. 1996only "standard" students (without part-time study, distance study and other "non-standard" forms)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Population

2%

44%

75%

90%

98%

96%

78%

54%

36%

25%

16%

12%

CZECH

REPUBLIC

No te : See the methodological comments in the text.age

99

2a

Proportions of Students in the Population by Age and ISCED Level at 31 . 12. 1990

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Population

CZECH

REPUBLIC

ISCED0 ISCED1 ISCED2

ISCED3w

ISCED3s

ISCED3g

ISCED6

ISCED5

ISCED7

No te : See the methodological comments in the text.age

100

2b

Proportions of students in population by age and ISCED level at 31 . 12. 1996only "standard" students (without part-time study, distance study and other "non-standard" forms)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Population

CZECH

REPUBLIC

ISCED0 ISCED1 ISCED2 ISCED3w

ISCED3s

ISCED3g

ISCED6

ISCED5

ISCED7

No te : See the methodological comments in the text.age

101

Methodological Comments on the Graphs 2a and 2b

Czech school statistics do not supply data on students by age, but they do give a number of othercharacteristics that can make up (to some extent) for the missing data on students´ age. The data by agecan be estimated on the bases of:

- age structure of children in kindergartens and

- number of students in each grade.

The age structure of students can be reconstructed from this data in the following way: Supposing thatparticipation in education is 100% for the years of compulsory schooling, 6 year old children not attendingkindergartens can be put into the first grade. The surplus pupils of the first grade are then supposed to be 7years old and the procedure is repeated for 7 years old and second grade, then for 8 years old and thirdgrade etc. till the age of 14. It was possible to leave the basic school in the eighth grade or ninth grade, sothe proportion of pupils leaving basic school in the eighth grade must be estimated and the scale of age forsuccessive grades must be extended (the proportion can be simply estimated from data for two successiveyears). The principle of shifting surplus students can be used for upper secondary and tertiary schools too;it will be a bit more complicated because we need to allow for a broader age span for each grade and forseveral types of schools and programmes.

This procedure clearly has many shortcomings – for example it does not take into account possible returnsto schooling after several years in work-but it is suitable as a crude estimate of the age structure ofstudents. It is necessary to bear in mind that they are crude estimates and contingent conclusions must beformulated with care.

While we have guidance for a relatively confident connection of age and grade for standard forms ofstudy, there is a lack of relevant information for part time study, distance study and other non-standardforms. So a very crude and simple procedure was used: the age of entrance to non-standard forms of studywas supposed to be two to three years over the age of entrance to the respective standard form and the agedistribution of entrants was supposed to be symmetrical around this age. It is an arbitrary decision but theweight of non-standard forms is rather small (about 3%).

In 1996, there were some changes in the Czech school statistics. Starting with the 1996/97 school year, thefollowing data are collected:

- age structure of students of special schools and

- age structure of entrants by type of school and programme of study.

This means we can reconstruct the age structure of students for each programme supposing the agestructure of entrants in previous years was the same. It is clearly not perfectly true but the differences areprobably not too big, so starting with 1996, the estimates of age structure of students could be supposed tobe sufficiently reliable. The reliability of age structure of non-standard students clearly does not change.

Note to the Graphs:ISCED 3w - vocational education,ISCED 3s - technical education,ISCED 3g - general education.

102

ANNEX 8:Scheme of the education system in the CR -- 1990, 1996

103

The Education System in the Czech Republic 1990

26 CSc.

Aspirantura

23 Ing., MUDr., MVDr., ...

21

Higher Education

Institutions

18 5 4

20

Post-

secondary

studies

19

18 13

12 GYMNASIA SECONDARY TECHNICAL

16 11 SCHOOLS

15 10 SECONDARY VOCATIONAL SCHOOLS .

14 9 4 4 4 3 2

14

87 Second stage

11 610 5

432 First stage

6 1

KINDERGARDENS

3

AGE GRADE

Final apprenticeship exam Entrance exam

Maturita Next educational level

Final state exam, rigorous exam Practise

COM

PULS

OR

Y SC

HO

OL

ATTE

ND

ANCE

BASIC SCHOOL

SPECIAL SHOOLS

Pre-

prim

ary

level

ISCED 0

Primary

level

ISCED 1

Low

er

seco

ndar

y level

ISCED 2

Upper-secondary

level

ISCED 3

Tertiary level

ISCED 6,7

104

The Education System in the Czech Republic 1996

Dr.

27

Doctorate

studies Mgr., Ing., MUDr., MVDr., ...

24

Bc.

22

Higher Education Institutions Higher

Master studies Bachelor studies professional shools

19 5 4 3 3.5 2

Follow-up .

. study .

20

19 13

12

11 GYMNASIA SECONDARY SECONDARY

10 TECHNICAL SCHOOLS VOCATIONAL SCHOOLS

15 9 8 6 4 4 3 2 4 3 2 1

15

14 9

8 6 Second stage

7

11 6 8

10 5

4

3

2 First stage

6 1

KINDERGARDENS

3

AGE GRADE Final apprenticeship exam Entrance exam

Final exam Next educational level

Maturita Practise

Absolutorium

Final state exam, rigorous exam

Prep

rimar

y level

ISCED 0

Primary level

ISCED 1

Lower-secondary

level

ISCED 2

Upper-secondary level

ISCED 3

Tertiary level

ISCED 5,6,7

COM

PULS

ORY

SCHO

OL A

TTEN

DANC

E

SPECIAL SCHOOLS

BASIC SCHOOL

105

APPENDIX

(February 1999)

1. Changes in Economic and Contextual Factors

The economic growth as measured by GDP sharply slackening in 1996 continued to slow down in 1997 aswell (annual increase by 1% only), while 1998 developments suggest the character of a recession already,with fall of production during the first three quarters as compared with same period of the previous yearby more than 2%. The fundamental reasons for this extremely unfavourable situation are evidently mainlyof long-term character, connected mostly with formal privatisation in the initial stages of thetransformation of the economy and serious delay in restructuring of the units. However, reasons of short-term character probably contributed to production problems too - restrictive monetary and fiscal policy inlast periods to face inflation problems (considered as a priority of the government’s policy), resultingnecessarily in decrease of state budget revenues, decrease of domestic demand etc.

Productivity continued to grow till 1997 (although to a more moderate extent as compared with 1995),while the fall of production was deeper than the fall of employment during 1998 again. Nominal as well asreal wages sharply decreased during 1997, and there occurred even fall of real wages in 1998 (for the firsttime after 1991). According to “European Commission Regular Report on Czech Republic’s ProgressTowards Accession”, GDP per capita represented already 13 250USD which is 63% of EU average in1997 (The main economic and social indicators - see Table 1).

To reverse the adverse economic development, the government in 1999 began to enforce a pro-growthpolicy in the form of a moderately deficit state budget (up to 2% of GDP), together with the intention todesign programmes to promote investment and industrial policy. The Central Bank responded to thestagflational manifestations by repeatedly lowering the interest rates. A prompt finalisation of theprivatisation of banks and large companies remains the fundamental precondition of the direct foreigninvestment inflow. With respect to that, the revitalisation of economy can be expected only in a two yearshorizon.

2. Labour Market

After continuous slight increase of employment reported in 1996, worsening economic situation both in1997 and 1998 resulted in new fall of employment. While the number of job vacancies had been high till1996, it has been decreasing since 1997. It dropped by one fourth and another third during 1997 and 1998respectively, thus causing the number of unemployed per one vacancy to triple. The averageunemployment rate grew from 4,1% to 7,5% between 1996 and 1998, while the decrease in labourdemand affected all educational categories of workers (see Table 2): unemployment of workers with basiceducation grew from 11% in 1996 to 16% at the end of 1998; unemployment of workers with uppersecondary education grew from 3-4% to 7-9%. Workers with higher education encountered the fastestgrowth of unemployment, from fractional 0,7% to 2,5%, and although it remains the lowest, the gap fromthe average population has shrunk.

The employment structure continued to change gradually. Employment both in agriculture and industrydecreased, while services were the only broad sector in the economy with continuous growth ofemployment (in 1998 share of this sector on total employment was already 55% as compared, with 53% in1996). Employment continued to grow particularly in trade, public administration, hotels and restaurantsand financial intermediation (in the two latter industries with signs of decreasing employment during 1998already).

106

With the current fast growing unemployment rate, the competition in the labour market intensifies, and thehandicapped groups are relatively legging behind. In recent years, the growth of the number ofunemployed school leavers has accelerated (see Table 3), while the labour market position of graduateswith apprentice certificate without Maturita and graduates of secondary technical schools has deterioratedmost of all. The gap between the unemployment of average population and youth, which is relativelyhigher than in OECD countries, is further deepening in the youngest age group of 15-19, where theunemployment reached over 30% by the end of 1998 (see Table 4 and Table 5).

The state policy gradually responds to the aggravating conditions on the labour market, and the labouroffices activity is growing. The labour offices have intensified youth programmes, and the co-operationwith school authorities has improved. Since the existent measures of the labour market policy areinsufficient to combat the growing unemployment, a new system of active governmental measures and aNational Employment Plan honouring the European frameworks are under preparation. They contain newapproaches incorporating the promotion of job creation and further education including a system offinancial incentives, an enhancement of requalification and resocialising programmes providing aframework for an active solution of problems related to youth transition to employment. With a specificfocus on school graduates, proposals were made to tighten the links between secondary vocational schoolsand the labour market, including new ways of co-funding these schools by employers at the expense ofcontributions to employment policy paid by companies, as well as proposals to enhance the careerguidance at basic schools. The governmental and parliamentary approval of these proposals as well astheir implementation will require some necessary period.

While the economic activity rate of the population has stagnated in recent two years, it has decreasedamong youth (see Table 6), thus entailing a higher participation on education. The most distinct shift hasoccurred in the age group of 15-19, which is related to the prolongation of the study period andpreferences being given to longer training courses leading to Maturita, as the gateway to tertiaryeducation. The economic activity of youth above 20 years of age has slightly dropped as well, which wascaused by an enhanced study possibilities on the tertiary level (see Table 8).

3. Recent Changes in the System of Education and in the Education Policy with Regard toTransition from School to Work

As concerns the structures of education and the student flows within the education system, there are nosubstantive changes at the upper secondary education level during the period 1997 - 1998. The proportionsof pupils entering the major streams of upper secondary education (gymnasia, professional schools andvocational - apprenticeship schools) did not change dramatically, although there is a visible tendency to adecrease of pupils entered to the apprenticeship schools (at present they represent 40% of all new entrantsto the upper secondary level, while it was 65% in the beginning of the Nineties). The major obstacle is sofar low connection of apprenticeship schools with the employers - quite a low number of enterprisesorganise and financially support the practical training of apprentices, although some less systematicmodes of co-operation with the employers already exist within the apprenticeship sector as a whole.

There already exist some proposals, by the Ministry of Education, Youth and Sports, and by the Ministryof Labour and Social Affairs, to introduce a compulsory financial support to education and training by theemployers (e.g. through transfer of a share of total wages to training funds, and/or through a direct supportto education) as well as to support the employers (e.g. by tax reduction), who invest in education andtraining. These proposals were still not agreed on by the government as such and were not passed over forconfirmation to the Parliament.

The number of students entering gymnasia and secondary professional schools remains stable. Theextension of general education within the study programmes of professional schools helps to overcome theproblem of low proportion of general pathway within the upper secondary sector.

107

Together with the expected establishment of new regions in the country (to become functional as of theyear 2000), a new regional policy of the education system management is being envisaged. The schooloffices within the seats of the future regions have been confined co-ordinating roles as concerns the schoolnetwork within their region. Their responsibilities are to take in account, when judging the fieldorientation of schools as well as the establishing of new study fields etc., the situation in the regionallabour market. For this purpose it is necessary that they communicate intensely with all the relevantpartners: the schools themselves, the labour offices, the social partners, the partners at different levels ofstate administration and self-administration.

Also the Ministry of Education extends its communication with the partners involved and its co-operationwith the Ministry of Labour and Social Affairs is being strengthened concerning the transition from schoolto work. The output standards from the education system are being tuned with the catalogues ofemployment and the information systems and information flows on the situation and prospects of newgraduates in the labour market started to be developed. New projects in this respect have been accepted(e.g. through the Leonardo da Vinci programme).

The processes of so-called “optimisation of school network”, which mainly concerns the upper secondarylevel, have already reached some results. The number of schools have decreased, following thedemographic decline. However, this did not substantively affected the number of pupils per one institutionand per one class. Still, some inefficiency in this respect within the system has been visible (see Table 7).

There was a continuing increase of students entering tertiary level of education, as a result of growinginterest of applicants in this level (see Table 8). Still the demand overcomes the number of acceptedstudents by about 100%. As the new Higher Education Act was adopted in the beginning of 1998, whichenables the introduction of non-university and private higher education, the chance that the demand fortertiary education will be satisfied in the near future has been growing.

108

Table 1: Main Economic and Social Indicators 1995 - 1998

Variable 1) 1995 1996 1997 1998 I-III.Q

A. Change in per cent (as compared with the previous year)

GDP, const. prices 6.4 3.9 1.0 - 2.1

Employment 2.6 0.7 -1.0 - 1.2

Productivity 3.7 3.3 2.0 - 0.9

Industrial output 9.2 6.4 4.5 5.0

Export, curr. prices 23.2 3.5 20.2 17.7 4)

Import, curr. prices 33.7 12.2 13.3 7.9 4)

Consumer prices 9.1 8.8 8.5 11.8

Nominal wages 18.5 18.4 10.5 9.0

Real wages 8.6 8.8 1.8 - 2.5

B. Unemployment rates

Regist.unempl. rate - total 2) 3.0 3.1 4.4 7.5

- males 2.3 2.4 3.3 6.3

- females 3.8 3.8 5.5 9.0

LFS unempl. rate - total 3) 3.6 3.8 4.7 7.3

- males 3.2 3.2 3.8 5.7

- females 4.1 4.6 5.7 9.2

C. Bill. USD

Trade balance - 3.6 - 5.8 - 4.4 - 2.5 4)

Bal.of payments,curr.account - 1.4 - 4.3 - 3.2 - 0.5

Direct foreign investment 2.6 1.4 1.3 1.2

Gross debt 16.5 20.8 21.4 24.2

Foreign exchange reserves 17.4 17.5 17.3 17 4)

State budget balance 0.3 - 0.1 - 0.5 - 1 4)

D. In per cent of GDP

Bal.of payments,curr.account - 2.7 - 7.6 - 6.1 - 1.2

Gross debt 32.5 36.8 44.5 41.6

State budget expenditures 33.1 32.5 31.5 .

Source: Czech Statistical Office, 1998

109

Table 2: Unemployment Rate by the Level of Educational Attainment

1996 1997 1998 1998Education March-May April-June April-June July-September

Total Woman Total Woman Total Woman Total WomanPrimary 11,2 10,3 13,4 12,0 15,0 13,7 16,2 15,0Apprenticeship 3,5 4,5 4,1 5,5 5,6 8,5 6,3 9,6Secondarytechnical school

2,0 2,5 2,9 3,8 4,2 5,6 5,1 6,7

Gymnasium 2,5 2,8 4,3 3,7 6,5 7,4 7,8 8,9University 0,6 0,7 1,4 2,0 2,0 2,4 2,5 3,7

Total 3,6 4,4 4,5 5,5 5,9 7,6 6,8 8,8

Source: Labour Force Survey, Czech Statistical Office

Table 3: Growth of the Number of Unemployed School LeaversAnnual growth in %

1995/94 1996/95 1997/96 1998/97Unemployed School Leavers 87 113 133 146

Source: Statistics - MOLSA, 1998

Table 4: Specific Unemployment Rate by Age Groups, in %

1996 1997 1998 1998Age Group March-May April-June April-June December

Total Woman Total Woman Total Woman Total Woman15 - 19 10,4 13,3 14,2 16,9 20,9 25,9 32,0 .20 - 24 5,0 5,5 5,8 6,2 7,8 9,6 9,0 .25 - 29 4,9 6,9 5,8 9,2 7,1 10,7 . .

Total 3,6 4,4 4,5 5,5 5,9 7,6 7,5 .

Source: Labour Force Survey, Czech Statistical Office

Table 5: Relation of Youth Unemployment Rates to Average Population

Spring 1996 2.Q 1997 2.Q 1998 End of 1998age group Rate relation Rate relation rate relation Rate relation15 – 19 10,4 2,9 14,2 3,1 20,9 3,5 32 4.320 – 24 5,0 1,4 5,8 1,3 7,8 1,3 9 1.225 – 29 4,9 1,4 5,8 1,3 7,1 1,2 . .

total population 3,6 1,- 4,5 1 5,9 1,- 7,5 1,-

Source: Labour Force Survey, Czech Statistical Office - 2. Q 1998

110

Table 6: Economic Activity Rate by Level of Educational Attainment

Age Group

Total Woman Total Woman Total Woman

15 - 19 26,0 … 24,3 20,6 20,4 17,6

20 - 24 77,5 … 71,7 57,7 70,1 59,0

25 - 29 89,2 … 79,6 61,5 80,4 64,2

Total 62,8 … 61,0 51,5 60,8 51,7

April - June

19981995 1997

March - May March - May

Source: Labour Force Survey, Czech Statistical Office, 1995, 1997, 1998

Table 7: Number of Students per School in Upper Secondary Education

School year 1995-96

Number of

Students

Number of

Students per

School

Gymnasium 361 131 644 364,7

Secondary vocational School 704 235 522 334,5

Secondary technical School 1 021 216 421 212,0

Total 2 086 583 587 279,8

School year 1998-99

Gymnasium 356 125 392 352,2

Secondary vocational School 659 116 252 176,4

Secondary technical School 625 168 905 182,6

Total 1 940 410.549 211,6

Number of

Schools

Source: Ministry of Education, Youth and Sports, 1999

Table 8: Successful Entrants to Tertiary Education

School year1996 - 97 1997 - 98 1998 - 99

Higher Professional SchoolsNumber of students accepted 9 345 11 881 12 192Share in population cohort (18 year-olds) in % 5,4 7,1 8,1

UniversitiesNumber of students accepted 38 590 39 445 40 305Share in population cohort (18 year-olds) in % 22,2 23,5 26,8

Source: Ministry of Education, Youth and Sports, 1998

111